Rising fuel costs are prompting calls for employers to allow more staff to work from home, as governments and businesses grapple with the economic fallout from disruptions to global oil supplies. The push for remote work is gaining momentum as prices at the pump surge, fueled by ongoing geopolitical tensions in the Middle East and the resulting impact on oil markets.
The Public Sector Association in New Zealand is urging the government to follow the lead of countries like Vietnam and Thailand, which have already encouraged remote work to reduce fuel consumption. With petrol prices reaching $3 a litre in some areas, many are struggling to afford their commutes, and a shift to remote work could offer immediate relief. This comes as concerns mount over the potential for broader inflationary pressures across supply chains due to increased transportation costs.
Government and Union Calls for Remote Work
Fleur Fitzsimons, national secretary of the Public Sector Association, believes a government directive encouraging public sector workers to work from home could have an immediate impact. “Government could easily indicate to the public sector that more workers should work from home and it would overnight have a difference for those people,” Fitzsimons stated. The core argument centers on reducing demand for fuel and easing the financial burden on workers facing escalating costs.
Several countries are already taking steps to mitigate the impact of the oil crisis. According to Al Jazeera, governments across Southeast Asia are scrambling to address energy shortages stemming from the closure of the Strait of Hormuz amid the United States-Israeli war on Iran. Vietnam has begun tapping into its fuel price stabilisation fund, while Thailand has implemented a temporary price cap on diesel. The Philippines has moved government offices to a four-day work week, and Myanmar has imposed alternating driving days.
Private Sector Response and Employee Rights
In the private sector, responses are varied. ANZ has confirmed its flexible work policy allows the majority of employees to work remotely up to 50% of the time, offering options for those needing assistance. A spokesperson for ANZ stated the bank understands “flexibility doesn’t mean the same thing for everyone” and arrangements are tailored to individual circumstances. Woolworths is currently monitoring the situation, while Fonterra offers flexible arrangements for office-based roles.
Employers and Manufacturers Association head of advocacy, Alan McDonald, suggests more employers are likely to consider flexible work options if fuel prices continue to rise or the situation persists. However, employment lawyers caution that employees do not automatically have the right to work from home. Alastair Espie, at Duncan Cotterill, explained that a formal flexible working request may be necessary if an employer is unwilling to accommodate the arrangement informally. “You can always ask,” Espie said, “but the question is whether they have to say yes and the starting point will be they probably don’t necessarily have to.”
Alison Maelzer, a partner at Hesketh Henry, added that employers are required to consider formal flexible working applications within a defined framework, but an initial informal conversation is often preferred. She noted that accommodating remote work can benefit employers through improved retention, employee engagement, and productivity.
Fuel Price Trends and Economic Impact
Vietnam has already seen significant adjustments to fuel prices, with retail prices cut sharply on March 11th after authorities utilized the petrol price stabilisation fund, as reported by The Nation Thailand. As of March 10, 2026, fuel prices in Vietnam were capped at VND 25,226 per liter (approximately $1.01) for E5 RON92, VND 27,047 ($1.08) for RON95, and VND 30,239 ($1.21) for diesel, according to Vietnam Briefing. These adjustments followed earlier increases of US$0.15–0.34 per liter, highlighting the sensitivity of the Vietnamese market to global oil price fluctuations.
Logistics and transportation companies in Vietnam are already adjusting pricing structures to account for rising fuel costs, potentially contributing to broader inflationary pressures. Freight operators are shortening the validity of price quotations to as little as 24 hours, reflecting the volatile market conditions.
The situation remains fluid, and the extent of the impact will depend on the duration of the disruptions in the Strait of Hormuz and the broader geopolitical landscape. Further policy responses from governments and businesses are anticipated as the crisis evolves.
What impact will these rising fuel costs have on other sectors of the economy? Share your thoughts in the comments below.
