The Senegalese government has suspended all non-essential foreign trips by ministers and senior officials, warning of “very difficult” times ahead, in light of the rise in global oil prices as a result of the US-Israeli war with Iran, which has been ongoing since February 28.
The war and Iran’s closure of the vital Strait of Hormuz led to turmoil in global energy markets, causing the price of benchmark Brent crude to rise, and prompting governments around the world to take steps to mitigate the negative effects.
In a speech he delivered during a youth event in the coastal town of Mbour on Friday evening, Senegal’s Prime Minister Ousmane Sonko explained that the price of oil is about $115 per barrel, nearly double the price of $62 that Senegal included in its budget.
“No minister in my government will leave the country unless it is for an essential mission related to the work we are doing at the moment,” he said, announcing that he had already canceled his scheduled trips to Niger, Spain and France.
Sonko cited these measures to justify the steps taken by debt-laden Senegal. He said that additional measures would be announced within days.
Other governments were quick to take measures to confront the crisis, including increasing fuel prices, providing subsidies, and working remotely.
In Jordan, Jordanian Prime Minister Jaafar Hassan decided to impose austerity measures to control spending and rationalize consumption in government institutions, including preventing the use of government cars except for official purposes, and preventing their use outside official working hours, as well as stopping the travel of official delegations and committees abroad for two months except for absolutely necessary reasons, and for justified reasons and with prior approval from the Prime Minister.
It was also decided to stop hosting official delegations, limit the expenses of official banquets for two months, and prevent the use of air conditioners and any heating means in ministries, public institutions and government departments.
The Indonesian government also decided to implement a work-from-home policy on Fridays for two months for government employees, as part of broader efforts to promote rationalization of energy consumption at the national level.
In addition to the public sector, the Indonesian government is also encouraging private companies to adopt work-from-home arrangements, as it believes that this policy may save the state budget up to 6.2 trillion rupiah (about $365 million) in fuel savings.
The Philippines declared a national emergency in the energy sector, in parallel with the launch of measures to rationalize consumption that may extend for an entire year. In Japan, Prime Minister Sanae Takaichi announced the reuse of strategic oil reserves, in a move aimed at containing any potential shortage, after similar withdrawals over the past days.
The government in Pakistan also took broad austerity measures, which included reducing government fuel consumption by 50%, reducing expenses, adopting remote work, in addition to reducing weekly work days.
In turn, India is moving to increase dependence on coal with the decline in gas supplies, while Bangladesh has imposed restrictions on the sale of fuel and temporarily closed its universities, in an attempt to reduce electricity consumption.
In Egypt, Prime Minister Mostafa Madbouly announced that the government will slow down the pace of implementing major government projects that require high consumption of fuel and diesel for at least two months, with its intention to reduce fuel allocations for all government vehicles by 30%.
Madbouly had issued a decision to close stores, restaurants, and commercial centers at nine in the evening on most days of the week, to confront Egypt’s energy bill, which doubled twice after the war, according to him.
On March 2, Iran announced the restriction of navigation in the Strait of Hormuz to what it said were ships and tankers linked to “enemies” in response to the US-Israeli attack.
About 20 million barrels of oil pass through the strait daily, and its closure has increased shipping and insurance costs, increased oil prices, and raised global economic concerns.
