Countries across Asia are scrambling to manage a severe fuel crisis triggered by the Iran war. The partial closure of the Strait of Hormuz, through which more than 80% of Asia’s crude imports pass, has sharply disrupted oil supplies and driven global prices higher.
Governments are revisiting strategies used during the COVID-19 pandemic to reduce energy demand. South Korea is exploring work-from-home policies and has launched a public campaign encouraging citizens to cut shower times, run vacuums on weekends, and charge devices during the day. Energy Minister Kim Sung-whan emphasized consultations with relevant ministries to implement further measures.
The Philippines has shortened workweeks in select government offices. President Ferdinand Marcos declared a state of national energy emergency, citing the “imminent danger” to the country’s energy supply. Pakistan closed schools for two weeks and encouraged remote work for office employees. Sri Lanka declared Wednesdays public holidays to ease energy use, while Singapore urged citizens to adopt energy-efficient appliances and electric vehicles. Thailand’s Prime Minister Anutin Charnvirakul instructed officials to suspend overseas travel, set air conditioning above 25°C, avoid formal office attire, use stairs, and work from home.
Several nations are also providing financial relief to offset rising costs. Japan will tap 800 billion yen ($5 billion) from reserve funds to subsidize gasoline, keeping prices near 170 yen per liter. New Zealand plans weekly payments of NZ$50 ($29.30) from April for low-income households, while Australia is increasing penalties for fuel price gouging amid widespread shortages.
Authorities are supplementing domestic reserves and temporarily loosening fuel quality standards to increase supply. Despite the demand crunch, central banks are not cutting interest rates as they did during COVID. Australia has raised rates twice this year to curb inflation, and similar hikes are expected in Japan, the UK, and Europe. Economists warn that the combination of rising energy costs and tightening monetary policy could strain economic growth across Asia.
