Asia-Pacific governments roll out emergency measures amid energy crisis

Friday 27 March 2026 - 14:50

By: Dakir Madiha

Asia-Pacific governments roll out emergency measures amid energy crisis

Asia-Pacific governments have launched urgent fiscal programs, fuel subsidies and liquidity injections to steady markets rocked by the Middle East war. The conflict pitting the United States and Israel against Iran disrupts energy supplies and undermines economic confidence across the region. A Reuters summary published Friday lists growing interventions from South Korea's bond buybacks to Japan's planned crude oil futures moves as policymakers shield economies now entering the conflict's second month.

South Korea plans a 25 trillion won ($16.6 billion) supplementary budget dubbed a wartime spending package funded by tax surpluses. Officials aim to submit it to the National Assembly by late March for approval before April 10. The plan may offer consumer vouchers and direct aid to firms hit by surging energy costs. Seoul also expanded fuel tax cuts and started emergency bond purchases to curb rising yields.

Japan taps 800 billion yen ($5 billion) from reserve funds to subsidize gasoline prices and considers crude futures interventions. Tokyo plans releases from strategic petroleum reserves.

Australia's Prime Minister Anthony Albanese warned Friday that fuel supply will tighten in coming months. He called a national cabinet meeting for Monday to align the federal response. About 470 service stations nationwide lack at least one fuel type due to panic buying; the government already tapped emergency gasoline and diesel stocks for several days' supply.

The Philippines declared a national energy emergency on March 24. President Ferdinand Marcos Jr. signed a decree empowering price controls, faster imports from alternate suppliers and hoarding crackdowns. Energy Secretary Sharon Garin said stocks cover 45 days at current use rates. The central bank conducted an extraordinary policy review on March 26 to calm markets.

New Zealand matched Australia's fuel standards to widen import options. It will pay low-income households NZ$50 ($29) weekly from April.

The Asian Development Bank warned Thursday that prolonged war could stall growth in developing Asia-Pacific economies and stoke inflation through 2027. UNESCAP data shows oil prices up 45 percent and gas 55 percent since late February fighting began; regional inflation hits 4.6 percent this year from 3.5 percent in 2025. Hamza Ali Malik of UNESCAP's macroeconomic policy division told UN News the sharpest effects hit freight costs alongside oil, gas and fertilizer prices.