Indonesia is promoting biofuels and the electrification of transport as a long-term strategy to respond to rising global fuel prices. (Photo: iStock)
Over the past month, surging oil prices have pushed Southeast Asia toward a breaking point. In major ASEAN economies, more than half of crude oil imports are sourced from the Persian Gulf. As tensions in the Middle East escalate, supply concerns have spread rapidly.
In Thailand, diesel prices rose 18% overnight. Vietnam adjusted fuel prices twice within a single day, while the Philippines took the rare step of declaring a national energy emergency, triggering public protests.
Panic buying and fuel hoarding have followed, adding pressure to already strained supplies and forcing governments into a reactive scramble.
Yet the crisis also creates an opening to rethink energy policy. From RECCESSARY’s perspective, early movers in energy transition provide a clear point of reference. Spain and Uruguay, for example, have been less exposed to global energy shocks thanks to their strong renewable buildout. Experts also point to improving energy efficiency as the most effective way to safeguard energy security.
Unlock the full article to explore three key takeaways:
- More than half of Southeast Asia’s crude oil imports come from the Persian Gulf, leaving the region highly exposed to Middle East tensions and triggering fuel shortages and public backlash in Thailand, Vietnam and the Philippines.
- Spain has doubled its wind and solar capacity in six years, reducing reliance on fossil fuels and becoming one of Europe’s lowest electricity price markets.
- Vietnam’s low carbon electricity accounts for 40% of its power mix, the highest in ASEAN, though experts estimate it will take another seven to ten years to reach Spain’s level of resilience.
