Global Fuel Rationing Increases Amid Supply Crisis

The International Energy Agency (IEA) has described the current disruption as the largest supply shock in the history of the global oil market. As a result, a growing number of governments are turning to fuel rationing and mandatory purchase limits to conserve supplies and prevent shortages.

Strait of Hormuz Disruption Fuels Concerns

Fuel rationing signals a shift from price spikes to physical supply stress, particularly for countries reliant on imported oil. The near-closure of the Strait of Hormuz, a key route for roughly one-fifth of the world’s oil, has disrupted supply chains faster than strategic reserves and subsidies can compensate.

Countries Implementing Fuel Restrictions

Sri Lanka

Sri Lanka has reinstated nationwide fuel rationing using a QR-code-based National Fuel Pass. This system limits the amount of petrol and diesel motorists can buy weekly, with tighter caps for private vehicles and higher, but still restricted, allocations for essential services.

Myanmar

Myanmar has implemented an odd-even license plate system, restricting fuel purchases on alternating days based on vehicle registration numbers. This follows acute diesel shortages and government-controlled distribution efforts.

Cambodia

Cambodia is effectively rationing fuel by shutting down approximately one-third of its petrol stations. This functions as a de facto cap on fuel access as authorities manage shortages without formal per-vehicle quotas.

Slovenia

Slovenia became the first European Union country to introduce formal fuel rationing during the current crisis. Private motorists are capped at 50 liters per purchase, while businesses and farmers are limited to 200 liters. Officials state sufficient fuel stocks exist but distribution bottlenecks and hoarding, exacerbated by cross-border fuel tourism, are concerns.

Bangladesh & Indonesia

Bangladesh has imposed fuel rationing as part of broader emergency measures to manage limited reserves. Indonesia has announced mandatory fuel purchase limits of 50 liters per day for private vehicles, with exemptions for essential sectors like healthcare and food supply.

Other Measures

Several other countries have enacted subsidies or energy-saving mandates, but haven’t imposed pump-level rationing. The Philippines reduced transport services and implemented emergency measures, while Egypt has limited non-essential government travel.

IEA and Government Statements

According to the IEA and AFP, countries heavily dependent on Middle Eastern oil and with limited strategic fuel reserves are most affected. Slovenian officials reassured citizens, stating, “Let me reassure you that there is enough fuel in Slovenia, the warehouses are full and there will be no fuel shortages.” They added, “To ensure fuel distribution, the government will regulate purchases... with a reasonable limit of 50 litres per vehicle.” The IEA further noted, “The war in the Middle East is creating a major energy crisis, including the largest supply disruption in the history of the global oil market.”

Future Outlook

With the Strait of Hormuz still disrupted and demand proving difficult to curb, additional countries may escalate from price caps and subsidies to full rationing if supply conditions worsen.