Southeast Asia Responds to Oil Crisis with Work-From-Home Policies and Fuel Subsidies

Governments and businesses across Southeast Asia are implementing measures to mitigate the impact of rising fuel prices and potential energy shortages stemming from disruptions to maritime traffic through the Strait of Hormuz, a consequence of the United States-Israeli war on Iran. These actions include encouraging remote work, capping fuel prices, and utilizing fuel price stabilization funds.

Work-From-Home Initiatives

Several countries are promoting remote work to reduce fuel demand. In the Philippines, government offices have shifted to a four-day work week. Thailand and Vietnam are encouraging officials to work from home and limit travel. Myanmar has implemented alternating driving days.

Fuel Price Stabilization Measures

Governments are directly intervening in the market to stabilize fuel prices. Thai Prime Minister Anutin Charnvirakul announced a temporary price cap on diesel. Vietnam has begun tapping into its fuel price stabilization fund, according to state media. On March 11, 2026, retail fuel prices in Vietnam were sharply cut after authorities utilized the fund to curb costs amid volatile global markets. The price of RON95-III petrol, the most widely used grade, fell to VND25,240 (US$0.95) per litre, while E5 RON92 biofuel dropped to VND22,950 per litre.

Regional Reliance on Imported Oil

Despite holding substantial fossil fuel reserves, Southeast Asia heavily relies on imported oil and gas, much of which transits through the Strait of Hormuz. This makes the region particularly vulnerable to disruptions in the global oil supply. According to Priyanka Kishore, director and principal economist at Asia Decoded in Singapore, these measures are proactive attempts to manage the supply situation before it worsens.

Gasoline Prices Across Asia

As of March 2026, gasoline prices vary significantly across Asia. Vietnam currently has a gasoline price of 0.7, while Pakistan’s is 0.93, China’s is 0.95, and the Philippines’ is 0.98.

Vietnam’s Emergency Measures

Vietnam has taken several emergency measures to address the rising oil prices. The government has mobilized approximately four million barrels of crude oil, enough to cover 30-45 days of domestic demand. Import tariffs on petrol and blending materials have been temporarily waived.