ASEAN moves to share fuel as the Middle East crisis disrupts supply

ASEAN and oil
ASEAN and oil

Southeast Asian countries are moving to strengthen energy security as the ongoing Middle East conflict disrupts global oil supply and drives up fuel prices.

With members of the Association of Southeast Asian Nations (ASEAN) economies heavily reliant on imported petroleum, the crisis has heightened concerns over shortages and economic stability, prompting calls for co-ordinated regional action.

Regional fuel-sharing plan gains urgency

ASEAN member states are working to operationalise an energy-sharing arrangement that would allow countries facing shortages to access petroleum from neighbours.

Under the proposed system, assistance may be triggered when a country’s fuel supply falls by at least 10 per cent of its requirements, prompting co-ordinated emergency measures, as reported by Philippine Daily Inquirer.

The initiative builds on the ASEAN Petroleum Security Agreement (APSA), which enables members to issue a “distress notice” and request support during supply disruptions.

Economic ministers have pushed to fast-track the agreement’s completion ahead of upcoming regional meetings.

Philippine officials said the government is identifying ASEAN partners with sufficient reserves that could extend assistance if domestic stockpiles decline.

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Impact of Middle East conflict on oil supply

The urgency stems from the escalating war involving Iran, which has disrupted global energy flows, particularly through the Strait of Hormuz, a critical route for around one-fifth of the world’s oil supply.

Southeast Asia is especially vulnerable due to its heavy reliance on imported fuel.

Countries such as the Philippines, Vietnam and Thailand source a significant share of their oil from the Gulf, which leaves them exposed to supply shocks and price spikes.

According to The Diplomat, governments across the region are scrambling to cushion the impact through conservation measures, subsidies and efforts to diversify energy sources.

Economic strain and emergency measures

The crisis has already led to higher fuel costs, inflationary pressures and disruptions in daily life.

Governments have introduced stopgap measures such as reduced working days, fuel subsidies and energy-saving policies to manage limited supplies.

Officials warn that these measures may not be sustainable if the conflict persists, underscoring the need for long-term regional solutions.

ASEAN ministers have also called for stronger co-operation to stabilise supply chains and protect economic growth.

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Philippines pushes energy security agenda

Philippines energy chief, Secretary Sharon Garin, urged to leverage the Philippines’ ASEAN leadership to promote regional energy security.

Philippine Star reported that Manila is in a position to prioritise initiatives such as fuel-sharing arrangements, diversification of energy sources and the development of an integrated regional power grid.

Analysts say strengthening co-operation within ASEAN will be critical not only for managing the current crisis but also for building resilience against future supply disruptions.

The members of ASEAN are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste and Vietnam.

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By Elan Castanares

Elan has a Bachelor of Arts degree in Journalism from the University of Santo Tomas, Manila.

His interests include International Relations, Current Events, Culinary Exploration, Local and Foreign Culture and Arts.

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