Philippines to Pakistan: A look at how Asian countries are hit by energy crisis

Countries across Asia are revisiting emergency interventions such as work-from-home policies first seen during the COVID-19 pandemic, as they grapple with a deepening fuel crisis triggered by the US-Iran war.

The region remains at the centre of the disruption, importing over 80 per cent of crude oil that passes through the Strait of Hormuz, a critical chokepoint that has been largely blocked since the conflict began on February 28.

The disruption has tightened global energy supplies, pushing governments to act swiftly to manage shortages and rising costs.

Here is how Asian countries are coping with the energy crisis:

Sri Lanka

Sri Lanka has sharply increased fuel prices by about 25 per cent, the second hike within a week, as global oil markets remain volatile. Prices of diesel, petrol, and kerosene have all seen steep revisions.

The government has also urged citizens to conserve fuel and electricity, while also introducing a four-day work week, declaring Wednesdays as public holidays for most sectors. However, essential services remain unaffected.

Authorities have rolled out a QR code-based fuel rationing system, limiting weekly fuel purchases to 15 litres for cars and 60 litres for buses. The move aims to prevent hoarding and manage supplies, even as the country seeks imports from India and Russia.

Pakistan

Earlier in March, Pakistan Prime Minister Shehbaz Sharif has announced a series of austerity measures to cut fuel consumption and government expenditure.

Schools were shut for two weeks starting March 16, while universities continue classes online. Government offices are operating four days a week, with only 50 per cent staff attendance, except in essential services. Cabinet members were asked to forgo salaries for two months, while lawmakers face a 25 per cent pay cut.

According to local reports, the fuel prices in Pakistan are surging so much that the government there is considering unfreezing prices of some petroleum products.

Philippines

The Philippines has declared a national energy emergency amid dwindling fuel supplies. President Ferdinand Marcos Jr. warned of an “imminent danger of a critically low energy supply” and said “urgent measures are necessary” to stabilise the situation.

Authorities have suspended spot electricity trading and are working on a revised pricing mechanism. Power systems are being adjusted to prioritise renewable energy and conserve fuel reserves.

Government employees have shifted to a four-day work week, air conditioning has been capped at 24°C, and energy-saving measures such as limiting appliance use have been enforced. The country currently holds oil reserves sufficient for about 45 days.

Nepal

Nepal, which relies on petroleum imports from India, has been significantly affected by rising global prices and supply uncertainties. The government has introduced fuel conservation measures across ministries and limited the use of official vehicles to essential services.

Authorities are also considering an odd-even system for private vehicles, depending on how the crisis evolves. Citizens have been urged to adopt energy-efficient practices and avoid non-essential travel.

With key sectors such as tourism and transport heavily dependent on fuel, the surge in prices is beginning to impact the wider economy.

South Korea

South Korea is expanding fuel tax relief and increasing the utilisation of nuclear power plants to over 80 per cent capacity. The government has also lifted seasonal restrictions on coal power generation.

Officials have warned of rising volatility in financial and energy markets due to the prolonged conflict. A nationwide conservation campaign has been launched, encouraging citizens to reduce energy use in daily activities.

Vietnam

The government in Vietnam has urged businesses to promote remote work to reduce fuel consumption. A statement released earlier this month by the government said that businesses need to "encourage work-from-home when possible to reduce the need for travel and transportation”.

Authorities are also working to stabilise fuel prices and manage supply amid the ongoing crisis.

Bangladesh

Bangladesh has shut down universities and introduced fuel rationing measures. According to a report by local newspaper the Daily Star, the country’s fossil fuel import bill is expected to rise sharply by $4.8 billion due to the crisis, putting additional pressure on its economy.

Singapore and Thailand

Singapore has advised households and businesses to adopt energy-efficient practices, including higher air-conditioning temperatures and the use of electric vehicles.

In Thailand, Prime Minister Anutin Charnvirakul has directed officials to cut energy use by limiting travel, increasing thermostat settings, and encouraging remote work.

Japan

Japan plans to deploy 800 billion yen ($5 billion) from reserve funds to subsidise fuel costs and stabilise gasoline prices at around 170 yen per litre.

(With agency inputs)