4 Measures EU Governments Can Deploy Now to Protect Drivers from the Oil Price Shock

The recent escalation in oil prices, triggered by the US-Israel conflict with Iran and the subsequent blockade of the Strait of Hormuz, has sharply increased fuel costs for European drivers. With around 20% of global oil trade passing through this strategic chokepoint, markets are bracing for prolonged high prices. This has already translated into significant additional expenses at the pump, exemplified by a near €30 rise in the cost to fill a typical 55-litre diesel tank since the conflict began. The situation highlights Europe’s ongoing vulnerability due to its heavy reliance on imported oil for road transport, a dependence that remains despite the gradual shift towards electric vehicles. In response to this crisis, Transport & Environment (T&E) and the International Energy Agency (IEA) have identified practical, demand-side measures that EU governments can implement immediately to alleviate the financial strain on drivers. These measures do not require substantial investment or long lead times and include promoting remote working, enforcing lower motorway speed limits, and encouraging simple vehicle maintenance practices such as regular tyre pressure checks. T&E estimates these actions could save European motorists between €30 billion and €74 billion annually, providing a swift and effective buffer against volatile oil markets while the transition to electric vehicles continues. Key recommendations emphasise flexible working arrangements, with the potential for three additional remote working days per week to reduce fuel consumption by up to 20%. Additionally, reinstating or tightening motorway speed limits by at least 10 km/h on major routes could generate further savings. Governments are also urged to accelerate public transport investment as a strategic response to energy security concerns and to issue clear public guidance on eco-driving and car-sharing to complement these measures. While these steps offer immediate relief, T&E stresses that they are interim solutions and cannot replace the long-term benefits of widespread electric vehicle adoption. The current oil price shock serves as a stark reminder of the fragility inherent in a transport system still largely dependent on fossil fuels. Although demand-side interventions can mitigate the immediate impact, the ultimate safeguard against future crises lies in accelerating the shift to electric mobility. This structural transformation would insulate drivers from global oil market fluctuations and contribute to broader climate goals. Policymakers are therefore encouraged to deploy these short-term measures without delay while maintaining a clear focus on the electrification of road transport as the definitive solution.