The energy crisis Europe response is taking shape as governments deploy emergency measures, from fuel tax cuts to rationing, to stabilise markets and protect consumers
Energy crisis Europe response and global emergency measures
As part of the evolving energy crisis Europe response, governments around the world have introduced emergency measures following the escalation of the conflict between the United States, Israel and Iran.
The closure of the Strait of Hormuz has disrupted nearly 20% of global oil supply and a similar share of liquefied natural gas. Despite the announcement of a two-week ceasefire, the crisis is expected to continue due to damage to energy infrastructure in the Middle East and persistent political uncertainty.
The International Energy Agency (IEA) has described the current situation as the largest supply disruption in the history of the oil market, exceeding the magnitude and systemic impact of the 1970s shocks.
For economies in Asia and Africa, structurally dependent on energy imports from the Gulf, the crisis has forced the adoption of unprecedented measures. These interventions, ranging from fuel tax cuts to strict rationing protocols and even a return to coal, highlight how energy security and social stability are being prioritised.
Response strategies in Asia: tax relief and forced austerity
Asia, which absorbs 75% of oil and 59% of LNG passing through Hormuz, has emerged as the region most exposed to the shock. Governments have responded with a combination of large-scale subsidies and emergency measures to limit consumption.
India has adopted one of the most structured responses in the region. On 27 March 2026, Finance Minister Nirmala Sitharaman announced a cut in excise duties on petrol and diesel. Although this has significantly affected government revenues, it has been considered necessary to protect consumers from price increases, which rose from 70 to 122 dollars per barrel in just one month.
Alongside tax cuts, the government has implemented restrictive measures to secure domestic supply:
- Export taxes: duties of 21.5 rupees per litre on diesel and 29.5 rupees per litre on aviation fuel
- Stock management: 5.3 million tonnes of strategic reserves available, with additional volumes under development
- Gas rationing: prioritisation of domestic consumption over commercial use
The Economic Times also reported that the government introduced temporary exemptions on import duties for selected petrochemical raw materials until 30 June 2026, to protect the pharmaceutical and manufacturing sectors.
Southeast Asia: rationing and flight reductions
In Vietnam, the aviation sector has cut 23 domestic flights per week to preserve fuel supplies, while Indonesia has introduced a rationing limit of 50 litres per day for private vehicles and mandated remote working for public employees every Friday.
The Philippines, at the end of March 2026, became the first country to formally declare a national energy emergency, given the wide-ranging consequences for its import-dependent economy. Transport strikes combined with fuel shortages have placed significant pressure on the government, which is now negotiating emergency supplies with Russia and China.
Africa and the energy crisis: vulnerability and local responses
Many African countries, despite exporting crude oil, depend on imports of refined products from the Middle East. This makes them highly sensitive to disruptions in Gulf routes and rising maritime insurance costs.
In Egypt, authorities ordered shops and restaurants to close early, with stricter limits in place until the end of April.
Nigeria, the largest economy in Africa, has seen petrol prices rise from 800 to 1,500 naira per litre within weeks. Given the fragility of the national grid and reliance on a $14 billion generator-based economy, rising diesel costs have made daily life increasingly unsustainable, pushing many households to spend up to 90% of their income on energy and transport.
Kenya and the Horn of Africa: rationing and humanitarian impacts
In Nairobi, many fuel stations ran dry by mid-March 2026. Suppliers began rationing fuel, leaving rural areas underserved.
The International Rescue Committee warned that diesel shortages are disrupting vaccine cold chains and the operation of medical equipment in refugee camps such as Kakuma and Dadaab.
In Ethiopia, the government introduced priority allocation of fuel, favouring public transport and agriculture over private use, while diesel prices surged from 80 to 230 dollars per barrel.
Fiscal emergency measures in Southern Africa
South Africa adopted a pragmatic approach. On 1 April 2026, it introduced a temporary reduction in fuel taxes lasting one month. However, currency instability and rising shipping costs have still led to record price increases.
Other countries in the region followed similar paths:
- Namibia: reduced fuel taxes by 50% for three months
- Zambia: suspended import duties and VAT on fuel
- Zimbabwe: increased ethanol blending to 20% and reduced import taxes
Return to coal
According to Carbon Brief, at least eight countries have announced plans to increase coal use or revise existing phase-out strategies.
These include Italy, Japan, South Korea, Bangladesh, the Philippines, Thailand, Pakistan and Germany. In most cases, governments are delaying plant closures or allowing existing facilities to operate at higher capacity, rather than building new plants.
In Japan, older and less efficient coal plants will be allowed to operate at full capacity for one year starting in April, reversing previous restrictions aimed at limiting CO₂ emissions.
