Asian governments are introducing emergency measures after ship traffic through the Strait of Hormuz was effectively halted, disrupting a key artery for global energy supplies and driving up prices.
Before the February 28 attacks by the United States and Israel on Iran, around 20 percent of the world’s seaborne oil consumption and liquefied natural gas (LNG) trade passed through the strait, much of it bound for Asia, including China, India, Japan and South Korea.
Traffic has slowed to a near standstill following the joint US-Israeli strikes and Iran’s retaliation, fuelling concerns over supply shortages and sharp price increases.
The Philippines declared a “national energy emergency,” saying its fuel reserves would last about 45 days, while Taiwan said it held roughly 11 days of LNG “safety stock.”
Bangladesh Petroleum Corporation said the country’s fuel reserves would last between 9 and 14 days.
Governments across Asia are moving to curb energy demand and manage shortages, including switching to alternative fuels, introducing remote working, cutting working days and suspending education.
Shift to alternative fuels
As stockpiles dwindle, several countries are turning to lower-quality petroleum products or more polluting alternatives such as coal.
Bangladesh has imported diesel from multiple countries to ease supply constraints, while the Philippines has allowed limited use of lower-grade “Euro II” fuel.
India has expanded its list of energy import partners from 27 to 41 in a bid to diversify supply.