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From the Philippines declaring an energy emergency to fuel queues in South Asia and reserve releases in Japan, governments across the region are adjusting to the ripple effect of the US and Israel - Iran war. The effects of the Iran war are beginning to show up far from the battlefield.
Across Asia, governments are adjusting in real time. Some are declaring emergencies. Others are rationing fuel, releasing reserves, or urging citizens to conserve energy. Flights schedules are being reconsidered, tourism bookings are slowing, and fuel queues are forming.
In India, Prime Minister Narendra Modi told Parliament the country must prepare for this moment much like it prepared during Covid, warning that disruptions to the Strait of Hormuz could affect energy security, shipping and trade.
Across the region, countries are moving from caution to contingency planning. And in one country, the response has already escalated to a national emergency.
Philippines: A national energy emergency
The Philippines has taken one of the most dramatic steps in Asia so far, declaring a national energy emergency as concerns over fuel supply intensify.
President Ferdinand Marcos Jr warned of the "imminent danger" to the country’s energy security and signed an executive order allowing authorities to accelerate fuel procurement and coordinate emergency measures. The declaration is expected to remain in place for up to one year.
Officials have also warned that grounding flights due to jet fuel shortages is a "distinct possibility", highlighting how quickly disruptions could affect travel and trade. Some government offices have already shifted to four-day work weeks to reduce fuel consumption.
For a country heavily dependent on imported fuel, the move signals how seriously Manila is reading the situation.
Thailand: Tourism and transport under strain
Thailand is beginning to see visible strain. Long queues have formed at petrol stations, with some outlets reporting diesel shortages.
The tourism sector is also feeling the pressure. Trekking operators in Chiang Mai report inquiries dropping sharply, while around 1,000 Thailand-bound flights have reportedly been cancelled. Officials warn that if airspace disruptions last eight weeks, Thailand could lose 600,000 international arrivals and 41 billion baht in tourism revenue.
Transport operators are also concerned. Fuel accounts for 60 to 70 percent of bus operating costs, and even small price increases could affect travel during the Songkran holiday period.
Authorities are now exploring contingency measures, including expanding biofuel use, diversifying imports, and increasing coal-based power generation if needed.
Malaysia: Subsidies surge
Malaysia’s response has focused on stabilising domestic prices. Prime Minister Anwar Ibrahim said the country’s fuel subsidy bill jumped from RM700 million to RM3.2 billion within a week, as global oil prices climbed.
Despite being an oil producer, Malaysia imports refined fuel, making it vulnerable to global price increases. Officials say supply remains stable but have urged consumers not to panic buy.
Rising fuel costs are beginning to affect transport, food prices and household spending, adding pressure to public finances.
Indonesia: Remote work and domestic prioritisation
Indonesia has taken precautionary steps to conserve fuel. The defence ministry has introduced one day of remote work per week, aimed at reducing commuting and lowering fuel consumption.
Authorities are also prioritising domestic energy supply, reflecting concern about potential shortages if disruptions continue.
Singapore: Contingency planning
The impact on Singapore’s energy access appears to be less severe when compared against its Asian neighbours. Minister-in-charge of energy and science & technology Tan See Leng stated on March 20 that the country does not need to dip into its energy stockpiles of LNG and diesel yet, and assured that supplies are enough to last for months.
Singapore is also one of Asia’s largest refining hubs with around 1.3 to 1.5 million barrels per day of capacity, has also begun contingency planning. The city-state is particularly important for New Zealand. Since the closure of Marsden Point in 2022, New Zealand now imports 100 percent of its refined fuel, with Singapore its largest supplier. Recent energy data shows New Zealand imported about 3,595 kilotonnes of fuel from Singapore, more than any other country. With shipments typically taking up to three weeks, any disruption to crude supply or refining in Singapore could ripple quickly into New Zealand’s fuel market.
Singapore and Australia have also signed an agreement to protect oil supplies and coordinate emergency responses, underscoring broader regional concern.
For South Asia and other regions, continue reading on the website.
Asia Media Centre
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