Countries across Asia are revisiting strategies first used during the Covid-19 pandemic as they grapple with a deepening fuel crisis triggered by the Iran war. With the Strait of Hormuz, through which more than 80% of Asia's crude imports pass, nearly blocked since Feb. 28, governments are racing to manage shortages and rising costs.
While no country has yet mandated work-from-home policies, several are actively considering the option.
South Korea's Energy Minister Kim Sung-whan reportedly backed the idea, saying, “We will consult with relevant ministries and actively consider measures for work-from-home.”
The International Energy Agency (IEA), which has already coordinated a record release of around 400 million barrels from strategic reserves, has urged countries to adopt measures such as remote working and reduced air travel.
Also Read: Trump Says Iran Seeks Deal After 'Very Big Present'; Tehran Denies Talks
IEA Executive Director Fatih Birol reinforced this approach, pointing to Europe's response after Russia's invasion of Ukraine. “It helped them a lot to go through these difficult times without Russian energy ... but keeping the lights on,” he said at a Sydney conference.
Across the region, governments are rolling out a mix of conservation measures and relief policies. The Philippines has shortened work weeks in some public offices, while Pakistan has shut schools temporarily and encouraged remote work. Sri Lanka has introduced a weekly public holiday to conserve fuel.
Reuters reported that Japan is planning subsidies funded by 800 billion yen in reserves to stabilise gasoline prices, while New Zealand has announced weekly financial support for low-income households. In Australia, fuel shortages and panic buying have prompted legislation to curb price gouging.
Despite echoes of the pandemic response, a key difference remains: monetary policy. Unlike during Covid-19, central banks are not easing but tightening. The Reserve Bank of Australia has already raised rates, citing energy-driven inflation risks.
“Central banks face a classic policy dilemma when oil prices surge, inflation rises but growth might weaken,” said Jennifer McKeown, chief global economist at Capital Economics.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
