Asia is scrambling to conserve energy as the Iran war disrupts oil and gas supplies

New Delhi — Asian countries are scrambling to conserve energy and protect consumers as the war on Iran and attacks on gas fields and oil refineries disrupt critical supplies, rattle markets and drive up prices.

The crisis is hitting Asia hard because of its heavy reliance on imported energy, much of which is shipped through the Strait of Hormuz, a major choke point now under pressure. Israeli and US attacks on Iran and Feb. About 90 ships – mostly Indian, Pakistani and Chinese flags – have crossed the strait since Iranian attacks against Israel and its Gulf Arab neighbors began on the 28th.

“The countries that are exposed to that supply disruption are not so much in Europe or the Americas, they are really in the Asia region,” said Michael Williamson of the United Nations Economic and Social Commission for Asia and the Pacific.

According to Ramnath Iyer of the US-based Institute for Energy Economics and Financial Analysis, Asia should prepare for “all economic activity to be impacted”.

Japan is one of the countries most exposed to bottlenecks in the strait, with about 93% of its oil imports dependent on the route. Fuel prices are already rising. A liter of regular gasoline was selling for about 175 yen ($1.09) on Thursday, up from about 144 yen ($0.91) a month ago.

To mitigate the impact, Japan released 15 days of private sector oil stocks, followed by a month’s worth of supplies from national reserves. Japanese ministries said the country had roughly 250 days of reserves at the end of last year.

But public concern is growing. Analysts warn of a repeat of the 1970s oil shock – also the result of uprisings in the Middle East – when rising prices triggered shortages and long queues. Calls are growing to accelerate the use of renewable energy as Japan lags behind other industrialized nations in wind and solar power.

South Korea imports 70% of its oil and 20% of its liquefied natural gas from the Middle East. Rising oil prices have created queues at cheap gas stations, while delivery workers, truckers and greenhouse farmers grapple with costs. However, officials say disruptions will be limited and the reserve will last for about seven months.

The government is taking additional steps to increase energy supply by lifting national limits on coal-fired power generation, planning to increase nuclear generation and considering the resumption of imports of Russian crude oil and naphtha, a key input for plastics production.

Despite China’s heavy reliance on shipping through the Straits – the largest globally by volume – China is relatively well insulated. Adequate strategic reserves of oil and gas, along with a growing share of renewables, which now account for nearly 30% of its energy mix, have helped China cushion the immediate impact.

However, Chinese consumers face higher travel and fuel costs. According to local media, airlines are raising fares on international routes to offset rising fuel prices, with some budget carriers doubling ticket prices on popular routes.

In Vietnam’s export-driven industrial sector, high fuel and freight costs are driving up production costs. State media reported that steel, textile and footwear makers are facing rising input prices, while retailers say suppliers are demanding price hikes or pausing deliveries.

Rising diesel prices are driving up transport and agricultural costs. Tourism and passenger travel are under pressure. Officials warned of possible jet fuel shortages in April, urging airlines to review flight schedules and prepare for potential cuts.

The government says it is using price controls to prevent sharp increases in fuel costs and keep the market stable.

Energy supply disruptions plague Thailand, where more than half of electricity is generated from LNG, about 40% of which is imported from the Middle East.

Thailand’s emergency energy plan halted petroleum exports, increased coal production and hydropower generation, and directed government offices to conserve energy.

As Thailand turns to the spot market to bid for prized LNG cargoes, experts warn energy prices will rise as the national subsidy budget runs out.

Indonesia has so far managed to hold off on raising fuel prices, but that relief will only last until after Eid al-Fitr, the Muslim holiday that marks the end of Ramadan.

As the war rages, analysts expect Indonesia will soon face a stark choice: Continue costly subsidies that protect consumers from higher prices, or scale them back to stay within national budget limits — which risks fueling inflation.

The Philippines has released 5,000 pesos ($83) in cash aid to about 139,000 tricycle taxi drivers in Manila to cover rising fuel costs. The program is slated to be expanded nationwide to include other public transport drivers, while fuel subsidies will be extended to fishermen and farmers.

Government offices have switched to a four-day work week to cut fuel consumption, and proposals to lower biofuel prices are under review.

To compensate for the fuel shortage, Pakistan ordered the closure of schools for two weeks and a 50% cut in free fuel allocation to government vehicles for two months.

Officials say alternative oil supply routes, including imports from Saudi Arabia, are being explored. Fuel shipments are also arriving through the Red Sea port of Yanbu.

To save fuel, the following week’s Pakistan Day Parade was cancelled. Instead the anniversary is marked with a simple flag-raising ceremony.

India has increased domestic production of cooking gas and prioritized distribution to households. Industry groups say the move has tightened supplies for commercial users such as hotels and restaurants.

Half of India’s crude oil imports and LNG pass through the strait. LPG remains the primary cooking fuel for millions of households, making stable supplies critical to both daily life and broader economic activity.

Two Indian-flagged LPG-carrying ships have crossed the strait since the conflict began, easing some of the tension.

The state-run Nepal Oil Corporation, Nepal’s sole distributor of petroleum products, began rationing cooking gas by filling gas cylinders of about 7.1 kilograms (15 pounds) only to half their capacity to extend supplies to more households.

Gasoline prices were also raised by about 10% and authorities forced households to switch to induction cookers to curb gas consumption.

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Delgado reports from Bangkok, Thailand. Associated Press writers Yuri Kageyama in Tokyo, Japan, Huizong Wu in Bangkok, Thailand, Anirudh Ghosal in Hanoi, Vietnam, Jim Gomez in Manila, Philippines, Muneer Ahmed in Pakistan, Muneer Ahmed in Islamabad, Ninik Karmini in Islamabad, South Indonesia, Seohul Indonesia, Hyung-Beijing, China and Binaz Gurubachary in Kathmandu, Nepal contributed to this report.