From fuel caps to fuel subsidies, from rationing to four-day weeks. 

With fuel prices going through the sunroof – petrol up 35% since the war on Iran began, and diesel up a whopping 80% – the New Zealand government moved this week to launch a support package. To the tune of watchwords timely, targeted and temporary and with an unabashed focus on the “squeezed middle”, Nicola Willis announced a $50 increase in the in-work tax credit, which will help about 143,000 households and expire after a year or when 91 stabilises under $3 a litre, whichever comes first. 

But how does that economic response, accompanied by a highlighting of the four-part fuel alert level system, compare with other countries around the world? To find out, let’s travel the world in the most fuel-efficient (and non-exhaustive) way imaginable: virtually. Please fasten your seatbelt. 

In the Middle East itself, it should be noted at the outset, the impacts are of an entirely different magnitude. By one estimate, almost 1,500 civilians have been killed in Iran since the US-Israeli bombardment began. More than 1,000 people have been killed in Israel strikes in Lebanon. Iranian reprisals across the region have taken lives and caused havoc. For many there, to be talking of a crisis centering on fuel price hikes is the stuff of dreams.

And yet in this asymmetric war, the economic impacts outside the region – fresh inflationary spikes in places already deep in cost-of-living have been one of the most effective blows Tehran can land. Most, but not all, of that stems from the near-blockade of the Strait of Hormuz, through which, as you might have heard a thousand times in recent weeks, around 20% of the world’s oil and liquefied natural gas supply – emanating from Iran, Saudi Arabia, Iraq, Kuwait, Qatar and the United Arab Emirates – passes. Or did, until recently.

Of course, that fuel is distributed evenly around the globe. Most of it, for reasons of geography, goes to Asia. Around 90% of oil that travels through the Gulf choke point is Asia-bound, meaning that our end of the world is considerably more exposed. 

Take the Phillipines. With almost all of its fuel coming from the Gulf, President Ferdinand Marcos Jr has declared a state of national energy emergency in the country of more than 110 million people, giving the government extra powers for procurement and distribution. With 90% of imports from the Middle East, Manila is now turning to China and Russia (for the first time in five years) for fuel stocks. Some public sector offices have moved to four-day weeks. 

Vietnam, another country with just a few weeks of supply secured, is similarly looking to deepen ties with Moscow in the face of shortages and price spikes. 

Emergency powers have been invoked in India giving the government a role in prioritising distribution of gas and fertiliser in the world’s most populous country. Across much of south Asia, LPG is a crucial part of the energy mix, relied on by many for cooking. Close to 60% of the gas is imported in India, almost all coming from the Middle East. 

Pakistan, which has proffered its services as host for Iran-US talks, has been hit hard by shortages, introducing a four-day work week in the public sector, temporary closures of schools and deciding to stage its T20 competition behind closed doors to keep crowds off the roads. 

In Thailand, the government has intervened to stabilise fuel prices. Sri Lanka is rationing fuel, with motorists limited to 15 litres a week and a four-day week for government workers. Reports of a shortage have sparked panic buying in Bangladesh, with military guards stationed at oil depots and fresh urgency towards commissioning of the country’s first nuclear power plant.

South Korea and Singapore are of particular interest to New Zealand, as the source of most of our refined oil – they source most of that crude oil via the Hormuz pinch point. In Seoul, the government has triggered emergency measures including capping fuel prices, releasing reserves to stabilise prices and subsidising re-routed tankers. Exports of refined oil are now limited to the levels of 2025 – at this stage it is not expected to impact New Zealand trade.

In Singapore – the world’s biggest ship fuelling hub – the government says its stockpiles are sufficient at this stage. For New Zealand, imports from the island city state may be protected by the terms of the Agreement on Trade in Essential Supplies, signed last year. 

Japan’s reserve tanks are deep, but they depend heavily on imports, prompting steps including the release of strategic reserves, a cap on fuel prices. 

There have been numerous reports in Australia of petrol pumps running dry, while the energy minister confirmed that six fuel shipments from Singapore and South Korea had been cancelled or diverted since the war began. There has been no direct move to provide monetary relief but Tuesday’s announcement in New Zealand has added pressure on Anthony Albanese to follow suit.

South Pacific nations are facing similar challenges. Following last week’s visit by Christopher Luxon, leaders in Samoa and Tonga said they were coordinating with New Zealand to ensure ongoing supply. 

China reportedly holds about three months’ fuel reserves, but it is not immune to the global impacts, and prices have gone up by around a fifth.

As Africa’s largest oil producer, Nigeria is able to command an increased price for crude exports, though that is a mixed blessing. Some countries in the continent, such as Ethiopia, have introduced emergency fuel subsidies. In the face of reported panic buying, the South African government has stressed it has sufficient reserves to weather the crisis, but there are concerns over the impacts for the agrarian economy.

Brazil has cut diesel taxes and imposed a temporary levy on crude exports. Argentina is seeing an increase in demand and price tag for its LPG exports. Cuba has been hit by repeated power blackouts, but this is not Gulf-driven; it is because of a US oil blockade.

The European Union has tweaked requirements around emissions but resisted calls for any major market interventions. No such caution in Spain, where prime minister Pedro Sanchez – one of only a few western leaders to volubly denounce the US-Iran attacks – has pledged to cut their version of GST on electricity bills and to subsidise fuel. Still, said Sanchez, “no plan can ​neutralise the misery of this illegal war”.

The Russian invasion of Ukraine, and the destruction of the Nord Stream pipeline prompted many in Europe, such as Germany, to boost their reliance on LNG imports, with Qatar a major source. The government has legislated to limit fuel stations to a single daily price increase, at noon. Other measures, such as price caps and windfall taxes on providers are reportedly under consideration. 

The United Kingdom this week announced a freeze on fuel duty, some support for vulnerable users of oil heating and an “anti-profiteering framework”. Greece has introduced subsidies for fuel and fertiliser, offset by a new tax on online casinos. Many have pointed to Russia as the biggest winner from the war, with its own oil suddenly more sought after, and sanctions being put to one side – all of which leaves Ukraine feeling more vulnerable. 

As an oil producer, the United States is more insulated than Asia, though not as much as Donald Trump claims. It has still seen an increase in fuel prices of around a third, and a similar impact on fertiliser. The financial markets are jittery, there is talk of stagflation, and there remains the multi-billion-dollar bill for the military operation to reckon with.