Countries across Asia are revisiting pandemic-era strategies to cope with a growing fuel crisis triggered by the conflict involving Iran. With the Strait of Hormuz largely disrupted, governments are considering measures such as remote work, reduced office hours and public energy-saving campaigns.
Several nations have already taken action. The Philippines has shortened the work week in some public offices, while Pakistan has closed schools temporarily and expanded remote work. In Sri Lanka, authorities introduced weekly public holidays to conserve fuel, and Thailand has ordered civil servants to cut energy use, including limiting travel and increasing air conditioning temperatures. Meanwhile, South Korea is actively weighing work-from-home policies, echoing recommendations from the International Energy Agency.
Other countries are focusing on financial relief as rising fuel costs strain households. Japan plans to deploy billions in subsidies to stabilise gasoline prices, while New Zealand will provide weekly support payments to low-income families. In Australia, fuel shortages and panic buying have led to emergency legislation aimed at preventing price gouging.
Unlike during the COVID-19 pandemic, however, central banks are not easing monetary policy. With inflation rising due to energy costs, some (including Australia's central bank) are instead raising interest rates, highlighting the difficult balance between controlling prices and sustaining economic growth.