BY COMFORT OGBONNA
Governments across Asia are considering emergency measures, including work-from-home policies and economic relief programs, as they struggle to manage the growing fuel crisis triggered by the ongoing conflict involving Iran. The crisis has disrupted global energy supplies and placed enormous pressure on countries that rely heavily on oil shipments passing through the Strait of Hormuz.
Asia sits at the center of the unfolding energy shock. More than 80% of the crude oil that travels through the Strait of Hormuz is destined for Asian economies, making the region especially vulnerable to disruptions in the critical shipping lane. Since hostilities escalated on February 28, Iran has largely blocked traffic through the strait, severely restricting the flow of oil and liquefied natural gas to global markets.
Although no Asian country has yet fully reintroduced nationwide work-from-home mandates similar to those seen during the COVID-19 pandemic, several governments say the option is under serious consideration as they look for ways to reduce fuel consumption and ease pressure on strained energy supplies.
South Korea is among the countries evaluating the measure. Energy Minister Kim Sung-whan said this week that allowing employees to work remotely could help reduce transportation fuel demand and support broader conservation efforts. His comments came in response to recommendations from the International Energy Agency, which has urged governments to take temporary steps to reduce oil demand while supply disruptions persist.
The International Energy Agency has already coordinated a record release of approximately 400 million barrels of oil from strategic reserves held by member nations in an attempt to stabilize markets and cushion the impact of supply shortages. In addition to the release of emergency stockpiles, the agency has proposed several demand-reduction measures, including encouraging remote work, limiting air travel, and improving energy efficiency.
Speaking at an energy conference in Sydney, the agency’s executive director said similar policies had previously proven effective during past energy disruptions. He pointed to Europe’s response following the Russian invasion of Ukraine, when governments introduced conservation policies to manage the loss of Russian energy supplies while keeping power systems operating.
South Korea has already launched a nationwide public campaign encouraging citizens to reduce energy use in everyday activities. Authorities are urging residents to shorten shower times, charge mobile phones during daylight hours, and schedule high-energy household tasks such as vacuuming during weekends when electricity demand is lower. Officials say additional measures, including expanded remote work policies for both government agencies and private companies, are being actively reviewed.
Elsewhere in Asia, governments have begun implementing a variety of emergency responses as the crisis intensifies.
In the Philippines, officials shortened the workweek for certain government offices earlier this month as part of broader efforts to conserve fuel and electricity. President Ferdinand Marcos also declared a national energy emergency, warning that the ongoing conflict poses a serious threat to the country’s energy security due to its heavy reliance on imported Middle Eastern oil.
Pakistan has adopted temporary measures aimed at reducing overall energy consumption, including closing schools for two weeks and encouraging office workers to work from home wherever possible. Officials say these steps are designed to stretch existing fuel supplies while global markets remain unstable.
Sri Lanka has taken an unusual approach by declaring a weekly public holiday every Wednesday. The move is intended to reduce commuting, limit fuel use, and conserve energy during a period of heightened supply uncertainty.
Singapore, one of Asia’s major financial and trading hubs, has also urged residents and businesses to take voluntary steps to cut energy consumption. Government officials have encouraged households to switch to energy-efficient appliances, make greater use of electric vehicles, and raise air-conditioning temperatures in offices and homes to reduce electricity demand.
Thailand has introduced a series of conservation measures within government institutions. Prime Minister Anutin Charnvirakul has instructed civil servants to suspend most overseas travel, set air-conditioning temperatures above 25 degrees Celsius, avoid wearing suits and ties to reduce cooling needs, use staircases instead of elevators when possible, and work from home where feasible.
While conservation measures aim to reduce fuel demand, several governments are also rolling out financial support programs to help households cope with rising energy costs.
In Japan, officials announced plans to tap roughly 800 billion yen, equivalent to about $5 billion, from reserve funds to support fuel subsidies. The government aims to keep average gasoline prices near 170 yen per liter in an effort to shield consumers from sudden price spikes. Analysts estimate that maintaining the subsidy program could cost up to 300 billion yen each month if global oil prices remain elevated.
New Zealand has also introduced targeted financial support for vulnerable households. Beginning in April, low-income families will receive temporary weekly payments of NZ$50 to help offset rising fuel and transportation costs. Finance Minister Nicola Willis said the assistance is designed to protect families most exposed to the effects of the global energy shock.
Australia is facing its own challenges as panic buying and supply disruptions have led to fuel shortages in several areas. Hundreds of petrol stations have reportedly run dry, particularly in remote regional communities where supply chains are already stretched by distance and limited infrastructure.
In response, the Australian government has introduced legislation that would significantly increase penalties for companies found guilty of fuel price gouging during the crisis.
Several Asian countries have also begun releasing gasoline and diesel from their domestic emergency reserves in order to increase short-term supply. In some cases, governments have temporarily relaxed fuel quality regulations to allow a broader range of petroleum products to be sold in the market.
Despite these emergency responses, policymakers face a difficult economic balancing act. Unlike the COVID-19 pandemic, when governments responded with aggressive stimulus and central banks cut interest rates to support struggling economies, today’s crisis is being driven largely by supply shortages and rising inflation.
Many central banks are now considering tightening monetary policy rather than easing it.
Australia’s central bank has already raised interest rates twice this year and cited energy price risks as a key factor contributing to inflation. The latest rate increase pushed borrowing costs to their highest level in ten months.
Financial markets expect several other major economies, including Japan, Britain, and parts of Europe, to raise interest rates in the coming months as inflation pressures build. Asian economies may face even greater strain as their currencies weaken against the U.S. dollar, making imported fuel more expensive.
Economists warn that policymakers now face a classic dilemma. Rising oil prices push inflation higher, but aggressive interest-rate increases could slow economic growth at a time when global uncertainty is already high.
Analysts say the appropriate response will depend on how long the supply disruption lasts and whether inflation expectations become entrenched. For now, governments across Asia are scrambling to manage the immediate impact of the fuel crisis while hoping that diplomatic efforts will eventually restore stability to global energy markets.
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