UK, Australia and Germany unveil emergency fuel plans amid Iran crisis

Thursday 02 April 2026 - 09:50

By: Dakir Madiha

UK, Australia and Germany unveil emergency fuel plans amid Iran crisis

As the American-Israeli military campaign in Iran enters its second month, governments around the world are rolling out emergency measures to shield their citizens from surging fuel and energy prices triggered by the closure of the Strait of Hormuz, a chokepoint that handles roughly 20 percent of global oil supply.

British Prime Minister Keir Starmer presented a five-point plan on Tuesday, pledging that the United Kingdom would not be drawn into the conflict. The package includes a reduction of more than £100 on household energy bills through the latest Ofgem price cap adjustment, which took effect Wednesday and lowered average bills by 7 percent to £1,641. Additional measures include extending the fuel duty freeze through September, allocating £53 million to support households reliant on domestic heating oil, and directing investment toward domestic clean energy. Starmer also announced that the Foreign Secretary would convene a 35-nation meeting this week to explore diplomatic options for restoring navigation through the Strait of Hormuz.

In Australia, Prime Minister Anthony Albanese delivered a rare televised address, warning that the coming months could prove difficult. The government halved the fuel excise, cutting the tax on each liter of petrol by 26 cents, and reduced the road user charge for heavy vehicles to zero, both measures running for three months. The Australian National Cabinet also adopted a national energy security plan to coordinate responses should global disruptions worsen.

Germany moved to curb fuel price speculation, with Chancellor Friedrich Merz announcing that petrol stations would be limited to a single price increase per day, modeled on an existing Austrian system. The legislation, passed by the Bundestag and approved by the Bundesrat, came into force before Easter. It permits unlimited price reductions while imposing fines of up to €100,000 for violations. Merz stated that the government was strengthening the Federal Cartel Office to tackle excessive pricing.

Among the most acutely affected are Pacific island states, which import virtually all of their fuel. Australian Foreign Minister Penny Wong said the government was exploring possible measures to assist Pacific partners while stressing that securing domestic supply remained the priority. The Samoan government urged citizens to avoid panic buying as international fuel prices continued to climb. The Lowy Institute warned that small Pacific economies and heavily indebted Asian countries could be forced to seek emergency support from the International Monetary Fund if the energy shock persists.

The International Energy Agency described the disruption as the largest supply interruption in the history of the global oil market. United Nations estimates indicate that oil prices have risen roughly 45 percent and gas prices around 55 percent since the conflict began in late February.