A deepening energy crisis is forcing governments across South, Southeast and West Asia to adopt rapid — and in some cases severe — austerity measures, as the prolonged US-Israeli war on Iran and Tehran’s retaliation disrupt crude oil shipments through the Strait of Hormuz.
The shock has translated into shortages and price spikes, forcing administrations to ration fuel, trim public spending, and recalibrate daily life.
The objective is straightforward: Conserve supply, discourage panic buying, and prevent wider economic dislocation.
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Signs reading ‘out of stock’ at a gas station amid rising petrol prices in Manila, Philippines on March 9, 2026. Photo: Jam Sta Rosa/AFP
News reports from international outlets including Reuters, The Guardian, Al Jazeera and local media point to a region scrambling to conserve fuel supplies while containing inflation and public anxiety.
While the austerity approach mirrors pandemic-era adjustments, they are now redeployed for an energy emergency rather than a public health one.
Across Southeast Asia, governments are combining behavioural nudges with market intervention.
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Pakistan has adopted some of the most visible austerity measures. Photo: AFP
The Philippines has emerged as one of the hardest hit. It became the first country to declare a national energy emergency, warning of “critically low” supply as it relies on the Middle East for nearly all its oil. Manila has shifted to a four-day workweek, capped air-conditioner use, and introduced subsidies and emergency funds to stabilise supply. Fuel prices have surged sharply, prompting transport strikes and forcing workers to absorb steep income losses. The government is also seeking alternative imports, including Russian crude, to plug the deficit.
Thailand has capped diesel prices and encouraged remote work, while Vietnam has urged businesses to adopt work-from-home policies and tapped stabilisation funds to cushion volatility.
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Vehicles move past switched-off street lights along a flyover in Colombo on April 2, 2026 as authorities order measures to save electricity amid an energy shortage across the country. Photo: AFP
India, heavily reliant on imported crude, has begun rationing LPG cylinders while domestic cooking gas prices climb in response to tightening global supply. The policy is aimed at prioritising essential consumption and dampening hoarding.
In Bangladesh, the government announced austerity measures last night, including curtailing office hours and early closure of shopping malls and shops. It also decided to cut expenditure on fuel, power, and gas for government offices by 30 percent and suspend all government-financed foreign training for civil servants until further orders. The country has also witnessed panic buying of fuel and supply disruptions.
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Long queues of cars and motorcycles stretched from the Trust Filling Station in the Bijoy Sarani area beyond the BAF Officers’ Mess in Tejgaon, Dhaka, on March 24, 2026. PHOTO: PRABIR DAS/STAR
Pakistan has adopted some of the most visible austerity measures. A four-day public-sector workweek, enforced remote work for half of government staff and temporary school closures are designed to suppress commuting and reduce consumption. The move reflects a broader attempt to “manage the supply situation before it hits them,” as cited in reporting carried by Al Jazeera via regional coverage.
Across Sri Lanka and Mauritius, neon lights and billboards went dark, signalling a shift from excess to restraint.
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People walk past a closed cinema as shops close early under a government-ordered curfew aimed at reducing energy costs in downtown Cairo on April 2, 2026. Photo: AFP
Further afield, South Korea restricted government vehicle use, while Australia cut fuel taxes to ease costs.
Elsewhere, Russia has imposed a gasoline export ban to protect domestic reserves, further tightening global supply lines and amplifying price pressures.
From shortened workweeks and shuttered classrooms to capped prices and emergency declarations, governments are attempting to engineer immediate demand compression while buying time in an increasingly volatile energy market.
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An airplane is seen on the tarmac near aviation fuel tanks at the Tribhuvan International airport in Kathmandu on April 2, 2026. Photo: AFP
As long as the geopolitical chokehold persists, austerity is no longer a policy choice but an operational necessity.