Germany is grappling with a persistent oil crisis, prompting the International Energy Agency (IEA) to propose measures reminiscent of the energy challenges faced in the 1970s.
Paris – The current surge in diesel and gasoline prices at German fueling stations, again fueled by conflict in the Middle East, echoes the oil crisis of 1973. That earlier crisis, triggered by the Yom Kippur War, led the German government under Willy Brandt to implement four consecutive Sundays with driving bans. Weekdays saw highway speed limits capped at 100 km/h and rural roads at 80 km/h, all aimed at curbing drastically increased oil and fuel prices.
Now, more than half a century later, the situation is unfolding again, this time due to attacks by the U.S. And Israel on Iran, which has subsequently effectively blocked the Strait of Hormuz – one of the world’s most important shipping routes. While Berlin intends to respond with a cap on price increases, the proposals from the IEA go much further, echoing strategies from the 1970s. The escalating geopolitical tensions are adding further pressure to global energy markets.
IEA Recommends Speed Limits and Remote Work – Transportation as a Driver of Oil Prices
According to the IEA, 45 percent of global oil consumption is attributable to transportation. The Paris-based agency therefore advocates for lower speed limits, increased use of public transportation and a return to remote work – a model many are familiar with from the COVID-19 pandemic – to minimize consumption. The IEA too recommends a “staggered access for private vehicles to roads in major cities on different days,” which could reduce congestion and associated fuel consumption.
The agency further sees potential for savings in carpooling, more efficient freight and delivery traffic, reduced air travel, and more fuel-efficient driving habits. The industrial sector can also contribute to easing the situation by switching to alternative energy sources.
Smart Fuel Savings
Filling up is currently a costly necessity. Those who heed these tips will save. Get a compact overview with this practical guide.
Download the tips HERE for free
The government itself can lead by example to encourage public cooperation. In 1973, the German government decided to reduce heating in public buildings and allow official travel “only when You’ll see urgent reasons.” The IEA also recommends directing state aid specifically to low-income households, as blanket subsidies have proven less effective in the past.
Government Plans Measures Against Fuel Prices – IEA Warns of “Severe” Consequences
The IEA has compiled ten steps to reduce oil demand, with a focus on transportation, but also proposals for the hospitality sector – such as switching from gas to electric stoves. “The war in the Middle East is triggering a severe energy crisis, which, among other things, is leading to the largest supply disruption in the history of the global oil market,” said IEA Executive Director Fatih Birol. “Without a swift resolution, the impact on energy markets and economies will become increasingly severe.”
Whether Berlin will adopt the IEA’s recommendations remains to be seen. For now, the coalition government has agreed on a “fuel price package” that will quickly pass through the Bundestag. It stipulates that gas stations will only be allowed to raise their prices once a day. (Sources: dpa, Bundestag.de, IEA)
