“Is Pandemic Season 2 Looming?” Nations Move to Control Daily Life Amid Oil Shock, Shifting to Remote Work, Four-Day Weeks, and Public Transport

Energy crisis intensifies amid Middle East risks
Europe and Asia activate consumption restraint policies
Emergency energy measures triggered in response to Iran war shock

As the U.S.–Iran war turns energy supply disruptions into reality, governments worldwide are moving aggressively to enforce energy conservation. Struggling to absorb surging oil prices, authorities are deploying sweeping measures ranging from remote work and four-day workweeks to public transport mandates and school closures. The breadth of these interventions, extending into daily life, evokes parallels with the COVID-19 pandemic era.

EU pushes to expand remote work again

According to the Financial Times (FT) on the 21th (local time), the European Commission is set to present recommendations to member states next week aimed at reducing energy demand, improving energy efficiency, and supporting the transition to clean energy. The proposed measures build on policies implemented during the 2022 energy crisis triggered by Russia’s invasion of Ukraine. The initiative forms part of broader efforts to reduce reliance on fossil fuels and accelerate the adoption of environmentally sustainable energy sources.

In a draft document, the EU encouraged companies to mandate at least one day of remote work per week wherever feasible. It also recommended public transport subsidies and reductions in value-added tax on heat pumps and solar panels. The EU plans to support member states in developing social leasing schemes for clean and efficient technologies, including heat pumps, electric vehicles, and small-scale batteries.

Officials emphasized that these measures are advisory rather than binding. One EU official stated, “It is our responsibility to ensure citizens understand what actions they can take to reduce energy consumption in the face of shortages,” adding, “We are not seeking to micromanage people’s lives.” The EU previously recommended lowering indoor thermostat settings by 1 degree in 2022, a measure that significantly reduced energy consumption. The bloc is also considering revising guidelines to impose lower taxes on electricity than on fossil fuels.

Southeast Asia resorts to emergency measures to curb oil consumption

Southeast Asian countries, heavily dependent on Middle Eastern crude, are also taking steps to suppress energy consumption. On the 12th of last month, Thailand’s cabinet ordered all government agencies not directly involved in public services to immediately implement remote work. Overseas travel by public officials, except for essential international meetings, has been temporarily banned, and air-conditioning in public offices is capped at 26 degrees Celsius. Thailand’s National Economic and Social Development Council (NESDC) stated that “the government expects all sectors to use resources efficiently.” While the private sector is currently only encouraged to conserve energy voluntarily, authorities are considering mandatory measures such as turning off signage lighting after 10 p.m. and restricting gas station operating hours if supply disruptions worsen.

The Philippines, which relies on Middle Eastern oil for more than 95% of its supply, moved early with compulsory measures as gasoline prices doubled. Since the 9th of last month, the country has implemented a four-day workweek across all government agencies, excluding police, fire services, and frontline public service workers. Authorities have mandated a 10–20% reduction in fuel and electricity consumption across all public institutions and banned training-related travel and offline meetings that can be replaced online. President Ferdinand Marcos stated, “We do not know when the turmoil in the Middle East will end. We are bearing the consequences of a war we neither chose nor wanted.”

Vietnam has also advised private companies to adopt remote work wherever possible. Citizens have been urged to refrain from using private vehicles and instead rely on public transport, bicycles, or carpooling, while avoiding fuel hoarding and speculation. Vietnam’s Ministry of Industry and Trade stated that the country is heavily dependent on energy imports from the Middle East and has been among the hardest hit by fuel supply disruptions following U.S. and Israeli strikes on Iran. According to state-run oil group Petrolimex, since the onset of the Iran conflict on February 28, gasoline prices in Vietnam have risen 32%, diesel 56%, and kerosene 80%.

Indonesia has opted to cut free meal programs to ease fiscal pressure. Last month, President Prabowo Subianto announced a reduction in school meal provision days from six to five per week for elementary and middle schools. Deputy head of the National Nutrition Agency, Nanik Sudaryati Deyang, told AFP that the measure is expected to save approximately $2.6 billion. The government is also considering measures to curb fuel consumption. Despite being an oil-producing country, Indonesia remains a net importer and provides substantial subsidies for fuel and natural gas. Proposed energy-saving measures include one day of remote work per week for civil servants, reduced official travel, and incentives to use bicycles, electric vehicles, and public transportation.

South Asia enforces four-day workweeks and school closures

South Asian nations are also adopting emergency measures. Sri Lanka, an island nation in the Indian Ocean, has implemented a four-day workweek by designating Wednesdays as public holidays since the 18th of last month. The policy currently applies to government agencies and schools, with plans for expansion into the private sector. Government officials warned that existing gasoline and diesel reserves are sufficient for only about six weeks and that any disruption in additional supply could lead to severe consequences. Sri Lanka imports all of its crude oil and also depends on imports for coal used in power generation.

Bangladesh has ordered the closure of all universities and mandated that indoor temperatures not be set below 25 degrees Celsius. Amid rising hoarding activity, authorities have also introduced limits on fuel purchases. The country of 170 million people relies on imports for 95% of its oil and gas demand. The Maldives and Nepal have likewise restricted supplies of liquefied petroleum gas (LPG) for cooking and are encouraging the use of electric stoves. India, the world’s second-largest LPG importer, has initiated measures to reduce demand for cooking gas. Reports indicate that restaurants in Bengaluru have limited weekday meal services to two per day and shifted to menus requiring shorter cooking times.

These sweeping measures reflect mounting concerns that the current situation could escalate into an energy crisis surpassing the oil shocks of the 1970s. As the Iran conflict enters a prolonged phase, even a cessation of hostilities is unlikely to yield a swift global economic recovery. The destruction of energy infrastructure in the Middle East has fueled projections that elevated oil prices could persist for at least a year. Indeed, oil production across key Middle Eastern exporters has sharply declined. According to the Organization of the Petroleum Exporting Countries (OPEC), Iraq’s daily output fell 61% from 4.2 million barrels in February to 1.6 million barrels in March. Kuwait (-53%) and the United Arab Emirates (-44%) also recorded steep declines, while Saudi Arabia’s production dropped 23% from 10.1 million barrels to 7.8 million barrels per day. The resulting surge in energy prices is exerting downward pressure across the global economy.