IEA proposes lower speed limits, cheaper public transport among measures to avoid Russia oil demand

Governments and households could drastically reduce demand for Russian oil in a matter of months, according to a new plan from the International Energy Agency (IEA), which includes proposed measures such as reducing road speed limits, working more from home, making public transport cheaper, and reducing business travel.

To reduce the likelihood of a major supply crunch during the emerging global energy crisis caused by Russia's invasion of Ukraine, the IEA proposed a 10-point charter that it said would lower oil prices worldwide, lessen economic damage, reduce Russia's hydrocarbon revenues, and help move oil demand toward a more sustainable path.

The IEA, an organisation that advises developed countries on their energy policies, said its plan would apparently reduce oil demand in advanced economies by 2.7mln barrels a day within four months, from the current 45mln barrels a day. 

If adopted in part or in full, the measures would have a greater impact on emerging economies, which represent about 45% of global oil demand, according to the IEA. 

Since transport accounts for the majority of oil demand, the IEA's strategy focuses on ways to use less oil to move people and goods.

The IEA's 10-point plan proposes "short-term actions such as lowering speed limits, encouraging working from home, limiting car access to city centers on occasion, reducing public transportation costs, encouraging carpooling, and expanding the use of high-speed rail and virtual meetings instead of air travel".

The IEA noted that "there is a real risk of markets tightening further and oil prices escalating significantly in the coming months".