With his war against Iran, Trump is forcing higher energy costs on the entire world.
Mar 25, 2026, 11:28Mar 25, 2026, 11:28
If the supply of oil suddenly drops, the world will have no choice but to reduce its oil consumption. In market economies, rising prices ensure that such a reduction in consumption occurs. The only question then is how this happens. Things can get very ugly if consumption is reduced by the economy producing less. According to experts, this would mean severe recessions in poorer countries, but also recessions in richer countries. And within countries, poorer households are hit harder.
At least the price only goes up once a day: a car drives past the price display at a gas station near Frankfurt in the morning.Image: DPA
The state can help mitigate such brutal market economic constraints by imposing a certain amount of austerity on everyone – or by motivating them to save in other ways. This could weaken what the German tabloid Bild already calls “tank rage”. According to the New York Times, consumers in the USA are already more skeptical about the future and expect an increase in unpopular inflation.
In order to prevent this anger, the International Energy Agency has called for savings, issued recommendations and listed savings measures that have already been implemented from all over the world. Some countries are just trying to protect drivers from higher prices without encouraging them to save.
In Austria, the ruling coalition wants to temporarily suspend taxes on gasoline and diesel. She also wants to limit the margins of fuel retailers. In Germany, the government enforces that gas stations are not allowed to increase their prices more than once per day. However, according to media reports, the government made up of the CDU and SPD could soon go a step further – and take a cue from Luxembourg. The government has now set maximum prices for gasoline, diesel and heating oil.
Pakistan as a preliminary isolated case
Croatia, Serbia, Hungary, Mexico, Japan and South Korea also have price caps. In France, gas station operators have agreed to impose price caps on themselves. And Denmark is taking an even milder approach. The government called for people to stop driving. If it is not absolutely necessary, it should be left alone, says the Energy Minister. “Please, please, please.”
People line up fearing a gasoline shortage – Lahore, Pakistan.Image: EPA
Some real austerity measures have already been adopted in less wealthy countries. The Philippines and Pakistan have shortened the working week for government employees to four days. In Sri Lanka, public offices are closed on Wednesdays. Countries such as Laos, Thailand and Vietnam promote teleworking and thus home office. Thailand has also urged office workers to turn off their devices and climb stairs whenever possible.
Currently, the only country in the world that has lowered the speed limit on its highways is Pakistan. Pakistan is by no means a pioneer. The measure has proven successful in previous energy crises; Switzerland also resorted to it in the 1970s. (aargauerzeitung.ch/nil)