Bangkok, Mar 10 (EFE).- The uncertainty around the energy supply triggered by the war in the Middle East has led several countries in Asia – the continent most dependent on the Strait of Hormuz – to undertake energy-saving measures ranging from reducing the working week to closing universities, among others.
The Strait of Hormuz, between the Persian Gulf and the Gulf of Oman, through which around 20 percent of global oil and liquefied natural gas (LNG) transits, is one of the focal points of the conflict, given Iran’s threats to ships passing through the region.
United States President Donald Trump has warned that he will hit the Persian country “20 times harder” if Tehran blockades the Strait.
Asia is the continent most affected by the crisis, given that it receives 84-90 percent of the crude oil that leaves Hormuz, and also 83 percent of the LNG passing through it, according to data from data and analytics platform Kpler and the US Energy Information Administration.
The oil prices per barrel crossed $100 on Monday. On Tuesday, Brent, the benchmark in Europe, stood at around $92 at the opening, while the West Texas Intermediate (WTI) – the US benchmark – fell to $94.77, following Trump’s comments that the war could end soon, although he later hinted otherwise.
Here are some measures taken by several Asian countries with respect to the energy crisis:
Japan, South Korea and China
In South Korea, President Lee Jae-myung has urged a fuel price cap – last applied in the country in 1997 – which Seoul could implement this week, according to the presidential policy chief Kim Yong-beom at a press conference.
In Japan, Prime Minister Sanae Takaichi has told parliament that her government would take action before it is too late to deal with the rise in fuel prices, without announcing concrete actions at the moment.
Japan’s Finance Minister Satsuki Katayama said after the G7 economic chiefs’ meeting the previous day that Tokyo was willing to release oil reserves, but stressed on the need for greater cooperation with other countries to take this step.
China, Tehran’s main trading partner and its largest oil buyer – and also one of the Asian countries with the highest reserves of crude oil and LNG – said it would take “necessary measures” to safeguard its energy security and called for ensuring stable and fluid supplies, according to its foreign ministry spokesperson Guo Jiakun on Tuesday.
China receives through Hormuz around 45 per of its oil imports, from Iran and other countries, and has repeatedly condemned the US and Israeli attacks on Iran.
Southeast Asia
The Philippines ordered the reduction of the workweek of several government departments to four days, a measure effective since Monday to save fuel.
In Myanmar, the ruling military junta has since Saturday rationed fuel and imposed restrictions on movement.
Thailand, one of the countries most dependent on imports, froze diesel prices for 15 days and announced that it is preparing fiscal measures against the crisis.
It also ordered government employees not involved in public services to telework, and asked the general population to optimize the use of air conditioning and encourage the use of stairs instead of elevators.
South Asia
Pakistan’s Prime Minister Shehbaz Sharif on Monday announced austerity measures, including a two-week closure of schools and universities and the reduction of the workweek in all government offices to four days.
The Pakistani government has also halved the fuel allocation for official vehicles, except for ambulances, and has asked public and private companies to ensure that half of their staff work from home.
Bangladesh has ordered the closure of all universities until the end of the month of Ramadan and has rolled out energy saving measures that includes the regulation of the use of air conditioners and artificial light.
Indian Foreign Minister Subrahmanyam Jaishankar warned Monday that the escalation of the conflict poses a “serious” threat to the country’s energy security.
The United States on Thursday authorized a temporary 30-day exemption to allow shipments of Russian oil stranded at sea to be sold to Indian refiners. EFE
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