Many Asian countries, including Pakistan, Vietnam, Thailand, Bangladesh, India and Sri Lanka, announced a slew of measures as the US-Israel war on Iran disrupted energy supplies, threatening economic stability. The measures include curbing government spending, shutting down schools and pushing remote work.
Asian nations that rely heavily on fossil fuel imports from the conflict-hit West Asia region are taking steps to safeguard their domestic markets.
Oil markets remain highly sensitive to the situation due to the strategic importance of the Strait of Hormuz, a narrow shipping route through which roughly one-fifth of the world’s crude oil supply passes.
List of Asian countries
Pakistan
The Pakistan Prime Minister, Shehbaz Sharif, announced more than a dozen austerity measures in a televised address late Monday. These steps include temporarily suspending the salaries of cabinet ministers, closing schools for two weeks from next week, ordering universities to shift to online classes, and adopting a four-day work week, according to Bloomberg.
He also said that, for the next two months, government spending will be cut by 20%, while fuel allocations for government vehicles will be reduced by half.
Last week, the government stated that the country, which relies heavily on energy imports from the Gulf, has sufficient petroleum reserves to meet national demand for about four weeks.
However, the country’s largest gas distributor has already begun reducing supplies to some industrial consumers. Sui Northern Gas Pipelines Ltd. informed customers in a notice last week that it would be unable to supply regasified LNG to fertilizer plants after being notified by its own provider, Pakistan State Oil, of supply disruptions.
Thailand
Thai authorities advised government employees to work remotely where possible and instructed public offices to set air conditioners at 26°C to help conserve energy. In a statement, the government said all sectors should use resources carefully and efficiently, and it also asked officials to avoid overseas travel.
Last week, Thailand said it had secured enough oil supplies for 2 months but decided to suspend exports to preserve its reserves. The government also capped diesel prices at just under 30 baht (about $0.94) per liter for 15 days.
Vietnam
The Vietnamese government on Monday removed duties on several imported petroleum products to help prevent fuel shortages and stabilize the domestic market. Authorities also encouraged companies to allow employees to work from home whenever possible to reduce fuel demand, according to a statement on the government’s website.
Vietnam has not yet experienced widespread fuel shortages, but state media reported that several smaller petrol stations have temporarily shut down or reduced operating hours due to declining supplies.
Bangladesh
Bangladesh has stepped up security at fuel stations, closed schools by sending students home and canceled decorative lighting planned for independence and Ramadan celebrations, officials said Monday, as per AFP. The South Asian nation, home to around 170 million people, relies on imports for about 95% of its oil and gas requirements.
The country has started receiving diesel supplies from countries such as China and India. Officials said Bangladesh currently has enough fuel to meet roughly one month of demand, while arrangements are being made to secure supplies for an additional month, reported. reuters.
The government in Hanoi further advised people to limit the use of personal vehicles and instead rely on public transport, cycling or carpooling. Despite these measures, thousands of motorbike riders were seen lining up at petrol stations across the country on Tuesday, as prices for unleaded gasoline have climbed by more than 20% since the start of the US-Israel conflict with Iran over a week ago.
Sri Lanka
Sri Lanka has raised retail fuel prices by more than 8% starting midnight Monday to discourage hoarding and panic buying amid rising global crude oil prices, officials said on Tuesday, as per PTI. The move follows a surge in global crude prices, which crossed $100 per barrel for the first time in four years amid escalating tensions in West Asia.
Under the new pricing structure, the cost of commonly used petrol and diesel has been increased by LKR 22 per litre, according to the state-owned Ceylon Petroleum Corporation.
India
Domestic cooking gas LPG prices were increased by ₹60 per cylinder on Saturday in India, marking the second hike in less than a year, as rising global energy prices pushed up costs.
Indian Oil Corporation Limited, Bharat Petroleum Corporation and Hindustan Petroleum Corporation said the Petroleum Ministry has taken steps to boost LPG production while ensuring sufficient stocks for domestic consumers and essential non-domestic sectors. To better manage supply, the ministry has also introduced a 25-day gap between bookings for consumers to discourage hoarding and curb black marketing.
A hotel industry association on Tuesday stated that many hotels and restaurants in Mumbai may have to suspend operations within the next two days if the issue remains unresolved.
Pradeep Shetty, Vice President of the Federation of Hotel and Restaurant Associations of India (FHRAI), also noted that similar interruptions are being reported in several other cities, including Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana, and Andhra Pradesh, according to PTI.
Oil prices today
Oil prices fell by more than 5% on Tuesday after reaching a three-year high in the previous session. The decline followed comments by US President Donald Trump suggesting that the conflict in the Middle East could end soon, which helped ease worries about long-term disruptions to oil supplies.
Brent crude futures dropped $6.64, or 6.7%, to $92.32 per barrel by 1202 GMT, while US West Texas Intermediate (WTI) crude fell $5.44, or 5.7%, to $89.33 per barrel. Earlier in the day, both benchmarks had fallen by as much as 11%.
Trading activity also declined significantly, reuters reported. Brent volumes slipped to about 284,000 contracts, the lowest level since 27 February, just before the start of the US-Israeli conflict with Iran. WTI volumes dropped to around 255,000 contracts, their lowest since 20 February.
On Monday, oil prices surged above $119 per barrel, the highest level since mid-2022, as production cuts by Saudi Arabia and other producers raised fears of major disruptions to global supply.
Meanwhile, energy ministers from the Group of Seven are set to meet on Tuesday to discuss ways to address surging energy prices driven by the war in Iran, while leaders from the European Union will also discuss the issue later in the day, officials said.
