Middle East

FACTBOX – How are Asian countries responding to energy shortages from Middle East tensions?

Disruption at Strait of Hormuz, which carries about 20% of global oil supply, sends prices spiralling, raises fears of shortages

Saadet Gokce  | 18.03.2026 - Update : 18.03.2026
FACTBOX – How are Asian countries responding to energy shortages from Middle East tensions?

- Southeast Asia relies on Middle East for 60% of its oil imports

- Nations respond to global energy disruptions with measures including four-day workweeks, school closures, export bans

ISTANBUL

Asian nations heavily reliant on Middle Eastern oil imports are rolling out emergency measures to conserve energy and protect dwindling reserves as conflict in the region disrupts global supply.

Tensions have escalated since the US and Israel launched a large-scale strike on Iran on Feb. 28, killing more than 1,300 people, including then Supreme Leader Ayatollah Ali Khamenei.

The situation quickly turned into an energy crisis for many nations, especially in Asia, after Iran in early March effectively shut down the Strait of Hormuz – a critical maritime chokepoint.

The shipping lane normally handles about 20 million barrels of oil a day, roughly 20% of the global supply. Its closure sent oil prices surging, leaving import-dependent economies scrambling to manage the fallout.

Southeast Asia is particularly exposed. The region relies on the Middle East for about 60% of its oil imports, according to a 2024 report by the International Energy Agency.

According to data cited by the Financial Times, Singapore is fully reliant on imported crude oil, followed by the Philippines at 95%, Thailand at 79.5% and Vietnam at 56.8%. Brunei depends on imports for 41.3% of its supply, while Indonesia and Malaysia are comparatively less exposed at 35.2% and 15.6%, respectively.

From four-day workweeks to tapping strategic oil reserves, here are some of the measures being taken.

China

China, the world’s biggest crude importer, has told top oil refiners to suspend exports of diesel and gasoline, according to Bloomberg.

Anticipating supply disruptions, China also ramped up crude imports at the start of 2026. Now, it is close to tapping its vast stockpiles, taking as much as 1 million barrels per day over the next four to six weeks, Bloomberg reported Wednesday.

Thailand

Thailand has announced austerity measures, such as remote work for government employees and using stairs instead of elevators.

Other measures include suspending overseas trips, setting air conditioning at 26-27C (around 80F) , wearing short-sleeved shirts without neckties, turning off electrical appliances, reducing photocopier use and promoting online meetings.

Thailand has also suspended its oil exports.

Japan

Japan on Monday began its largest-ever release of oil from its strategic reserves. The release is equivalent to 15 days of domestic consumption and aims to ease supply concerns and stabilize petroleum distribution.

Prime Minister Sanae Takaichi also announced subsidies to effectively cap gasoline prices at around ¥170 ($1.07) per liter (0.26 gallon) if prices rise further. Similar measures would also apply to diesel, heavy oil and kerosene.

South Korea

South Korean President Lee Jae Myung earlier this month urged authorities to “swiftly” introduce a cap on domestic fuel prices and take preemptive measures.

Seoul has also pledged to release a record 22.46 million barrels from its strategic reserves, in line with an agreement among International Energy Agency (IEA) members to stabilize oil markets.

The government also announced Monday that it would lift limits on coal-fired plants and raise nuclear power plant utilization to as high as 80%.

The government plans to fund a supplementary budget aimed at cushioning households and businesses from rising energy costs, according to Bloomberg.

Sri Lanka

Sri Lanka has designated Wednesdays as holidays as part of a four-day workweek scheme amid the fuel crisis.

The country is also implementing a digital QR code-based system to ration fuel sales.

President Anura Kumara Dissanayake also urged electric car owners to stop charging at night, when the grid relies on fossil fuel power stations. During the day, the country has excess energy from solar, he said.

Dissanayake also said while the country was unable to secure two shipments of 90,000 tonnes of crude oil due to the war, it is in talks with India and Russia to purchase refined products.

Pakistan

Pakistan has ordered half of its public sector employees to work from home and imposed a two-week school closure.

Additional measures include cutting fuel allowances for official vehicles and reducing government cars in traffic.

The Pakistan Day parade on March 23 has also been cancelled, with observances limited to a simple flag-hoisting ceremony, according to Radio Pakistan.

Myanmar

Myanmar has imposed fuel usage restrictions on the use of private vehicles, as “a precautionary measure for long-term stability.” Under the scheme, non-electric vehicles with even-numbered plates will only be allowed to drive on even dates, and those with ​odd-numbered plates on odd dates.

India

The Indian government has invoked emergency powers to direct public and private refineries to boost liquefied petroleum gas (LPG) production to prevent a shortage of cooking fuel.

Domestic supply has been prioritized for households, while imports will be allocated to essential sectors such as hospitals and schools.

It has also increased its crude oil imports from Russia.

Nepal

The country had a period of panic buying and shortages in cooking gas cylinders, according to media reports. Authorities were forced to take measures, and the country’s main oil company said it would only fill empty cylinders halfway.

Bangladesh

Bangladesh has ordered its educational institutions to close nationwide to conserve fuel and electricity. Universities were also directed to begin their Eid-ul-Fitr holidays ahead of schedule, effectively shutting campuses across the country.

The government also issued guidelines encouraging institutions and offices to use electricity more efficiently, including maximizing natural daylight and minimizing unnecessary lighting and power consumption.

It has also started imposing planned blackouts.

Cambodia

Around 2,000 fuel depots and petrol stations in Cambodia were forced to close due to supply disruptions, though 1,600 have since reopened following inspections, leaving 400 still shut as of Saturday, the Ministry of Commerce said.

The government announced plans to develop its own oil refinery and crude stockpile by 2029.

Energy Minister Keo Rottanak told Bloomberg Monday that Cambodia had fuel supplies for less than 30 days but was diversifying energy sources to replenish stock.

Philippines

The Philippines is implementing a four-day workweek for government offices amid the supply disruption. All government agencies were also ordered to cut their fuel and power consumption by 10-20%, while activities such as government study tours and team-building were prohibited as well as “meetings that can be done online,” according to the GMA News Online.

President Ferdinand Marcos Jr. also pledged fuel subsidies and cash transfers to affected sectors.

Vietnam

Vietnam has urged its citizens to limit movement and work remotely where possible to mitigate the impact of the crisis, according to Nikkei Asia.

Authorities are also encouraging commuters to switch to bicycles, carpool and reduce private car use unless necessary.

Businesses have also been advised to adopt renewable energy sources such as solar and wind, upgrade to more energy-efficient machinery and optimize logistics by transporting larger volumes per shipment to conserve fuel.

The government has cut taxes on various petroleum products to 0% through the end of April in a bid to ease cost pressures, according to Tuoi Tre News.

Malaysia

Malaysians have been urged to conserve energy to help ensure domestic fuel reserves last longer, according to The Borneo Post.

Deputy Prime Minister Fadillah Yusof said that while not currently under consideration, the government may impose restrictions on fuel exports as a last resort if domestic supply becomes critical.

The government also has existing fuel subsidies in place to help cushion the impact on consumers.

Singapore

Singapore has urged people to conserve energy and use more energy-efficient appliances. However, minister Tan See Leng said Singapore’s energy supplies remain secure, according to The Straits Times.

Indonesia

The government has promised to maintain subsidized fuel prices throughout the Eid al-Fitr holiday.

“Our issue right now is not supply. Stock is not a problem; everything is available. The challenge lies in the price, and we are currently conducting an exercise to formulate comprehensive measures,” Energy and Mineral Resources Minister Bahlil Lahadalia said March 9.

Authorities are also considering measures such as a four-day work week or remote work to curb fuel consumption, according to media reports.

Taiwan

Taiwan is using a dual price-smoothing mechanism and temporary fuel commodity tax cuts to limit the surges in gasoline and diesel prices. State-owned CPC Corp is also absorbing part of global fuel cost rises.

Targeted subsidies for sectors such as agriculture and fisheries are also in place to ease the impact of higher energy prices.

Hong Kong

Hong Kong has reached out to various suppliers to guarantee a stable supply of fuel, according to the public broadcaster RTHK.

Chief Executive John Lee has urged suppliers to secure alternative sources where possible and to build sufficient stockpiles.

Authorities are also preparing to adjust the fuel mix for electricity generation and to guard against any potential malpractice.


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