Petroleum crisis: what countries are doing to cushion citizens
Business
By
Graham Kajilwa
| Mar 25, 2026
As the government remains mum, with officials burying their heads in the sand, other countries are coming up with strategies, albeit crude in some instances, to tackle possible fuel shortages.
Long queues at petrol stations, especially in the morning, are slowly becoming a norm in the city as motorists rush to fill up their tanks in anticipation of higher prices in the upcoming price cycle or shortage due to the war in the Middle East.
From simple provisions such as governments urging workers to wear lighter clothes to reduce the need for air conditioning in countries where power is dependent on thermal generation, to banning non-essential travel and tax cuts, countries are devising ways to ensure demand for fuel is regulated.
A week ago, Sri Lanka declared a four-day work week to ensure fuel reserves are not depleted. This has been done by declaring one day each week, Wednesday, as a public holiday, which will reduce the need for transportation, hence softening fuel demand.
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“We must prepare for the worst but hope for the best,” President Anura Kumara is quoted on BBC.
The Guardian reports that in the Philippines, there is an order for all national government agencies, State universities and colleges, and local governments to reduce their fuel consumption by at least 10 per cent.
The March 6 publication quotes a presidential palace spokesperson who said a four-day working week was being considered as well. This was later implemented, starting March 9.
In the order, President Ferdinand Marcos also declared a temporary suspension of non-essential travel and activities in the government. Some countries also put slashing of value-added tax (VAT) on the table to tackle this crisis, such as Italy and Spain.
Reuters reported on March 20 that Spain plans to cut VAT on energy bills and fuel prices as part of a Sh754 billion ($5.8 billion) package to counter the economic impact of the fuel crisis.
“The measures, which require approval from parliament, include the reduction of value added tax on electricity bills to 10 per cent, cutting fuel prices by up to 30 cents per litre and granting a fuel subsidy of 20 cents per litre for the farming and transport sectors, which are some of the most exposed to the sharp spike in energy prices caused by the war,” Reuters reported.
The 30-cent drop signifies an 11 per cent reduction in VAT on fuel.
On Wednesday last week, Italy announced cuts in excise duties on fuels. Prime Minister Giorgia Meloni said the government is cutting fuel prices by Sh37 (0.25 euros) per litre for all.
As reported by France24, Japan has deployed subsidies to ensure the price of fuel stays at Sh130 ($1.07) while Taiwan government has set aside some cash to absorb a bigger part of the increase.
According to Focus Taiwan, an English news channel in the country, Taiwan’s state-run oil supplier CPC Corp has absorbed Sh13 billion ($100 million) in fuel costs over the past two weeks in a bid to stabilise the prices.
Under a price-stabilisation mechanism, CPC absorbs at least 60 per cent of cost increases while keeping domestic fuel prices among the lowest in neighbouring markets,” Vice Minister of Economic Affairs Lai Chien-hsin was quoted.