By Kimberley Kao and Amanda Lee

From work-from-home arrangements to fuel price caps, Asian economies are intensifying efforts to mitigate the fallout of Middle East volatility.

Here's how governments in the region, which is heavily exposed to surging energy prices, are managing the fallout:

JAPAN: Japan plans to release 15 days' worth of private-sector oil reserves and one month's worth of the state's stockpile, looking to stave off a rise in fuel costs.

Japan, which imports the bulk of its energy from the Middle East, is also capping the national average retail price of gasoline at around 170 yen, about $1.07, and will adopt similar measures for diesel oil, heavy oil, kerosene and other products.

SOUTH KOREA: Seoul has set caps on diesel and gasoline prices, a move ING economists said it has not resorted to since 1997.

The government also plans to lower prices of ramen noodles and cooking oil, which account for a large portion of national consumption, to help ease living costs.

The measures are likely to keep consumer inflation anchored near 2%, ING said.

CHINA: China is in a better position than most of its neighbors to withstand an oil price shock thanks to its sizable strategic reserves.

China's energy sources are highly diversified, with Russia the biggest overall supplier, Gavekal Research analysts said. It relies on crude for just 18% of primary energy use.

The country's three biggest oil companies have been directed to maintain production and facilitate transportation to ensure stable supplies.

INDIA: India is pivoting inwards, boosting domestic production liquefied petroleum gas, and directing the entire domestic supply toward households.

India imports about 60% of the LPG it consumes, with about 90% coming via the Strait of Hormuz, where the conflict has ground shipping to a halt.

New Delhi said that 70% of its crude imports are now coming via other routes, up from 55% previously. The U.S. has also said that it will give India a waiver to buy Russian crude as a "stop gap measure."

THAILAND: Thailand is tightening its belt where it can, ordering bureaucrats not involved with public service delivery to work from home and suspending overseas visits to reduce energy consumption.

Thailand has been one of the most aggressive in deploying intervention measures, leaning into price controls, supply management and fiscal support to manage high exposure to energy shocks, Nomura analysts said.

PHILIPPINES: Manila is rolling out fuel subsidies for transport and delivery drivers, while coordinating with oil companies to stagger pump price adjustments.

A bill has also been introduced to allow the president to temporarily suspend or reduce the excise tax on fuel as needed to shield households from price hikes. Congress also said it is ready to approve a supplemental budget if needed to help protect overseas Filipino workers.

A prolonged conflict could hit remittance flows that are key for the economy as worsening prospects in the Gulf weigh on demand for migrant workers, Capital Economics said.

TAIWAN: State-owned oil and gas company CPC has absorbed some of the hit from the surge in energy costs, while the government has introduced price stabilization measures.

Taiwan's minister of economic affairs said that the island has enough natural gas supplies to last through April. One-third of Taiwan's natural gas supply usually comes from Qatar and the remaining 60%-70% is sourced from elsewhere.

INDONESIA: Though Indonesia is resource-rich, it has thin buffers with which to blunt the blow of an oil price shock.

Analysts at Nomura estimate that Indonesia's oil reserves can cover just 23 days of demand.

The government is considering diversifying crude imports away from the Middle East and is likely to boost fuel price subsidies.

SINGAPORE: The city-state remains relatively insulated so far, drawing half its gas needs from regional sources.

As a safeguard, Singapore has bolstered a fuel stockpile that power generators can tap if gas supplies are severely disrupted.

--Fabiana Negrin Ochoa and Ying Xian Wong contributed to this report

Write to Kimberley Kao at kimberley.kao@wsj.com and Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

March 13, 2026 05:23 ET (09:23 GMT)

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