Rising oil and gas prices driven by the US-Israeli war on Iran over the past three weeks have created a global fuel crisis , prompting governments to introduce urgent measures to limit the impact on economies and fuel supplies. The New Arab looks at some of the key steps taken by countries to respond to the crisis so far. South Korea prepares supplementary budget In South Korea, a spokesperson for the ruling party said on Sunday that the country will prepare a supplementary budget of around 25 trillion won ($16.61 billion) to support those affected by rising oil prices linked to the conflict.
Following a meeting between the ruling Democratic Party and the government, the spokesperson said, according to Reuters , that an additional spending plan would be prepared as soon as possible.
It will utilise expected surplus tax revenues rather than issuing treasury bonds in order to minimise market disruption. Philippines allows lower-grade fuel In the Philippines, the government has temporarily permitted the limited use of a cheaper but more polluting type of fuel to ensure supply, as it seeks to manage the fallout from the war on Iran.
The Department of Energy said, according to Reuters , that only vehicles manufactured in 2015 or earlier, traditional buses, power plants, generators, and the maritime and shipping sectors would be allowed to use petroleum products meeting Euro-2 standards.
The ministry said in a statement that "this measure aims to help maintain a continuous, sufficient and accessible fuel supply, while allowing limited flexibility for sectors that may be affected".
It added that oil companies must keep Euro-2 fuel separate from higher-grade Euro-4 fuel in storage, transport and retail systems.
Last week, thousands of traditional bus drivers protested across the country after diesel prices more than doubled due to rising global oil costs. The government has since introduced measures including shorter workweeks and fuel subsidies, while parliament granted the president emergency powers to suspend or reduce fuel taxes.
President Ferdinand Marcos said in a video message that the government is in talks with India, China, Japan, South Korea, Thailand and Brunei over potential fuel supply arrangements. The Philippines is also set to import Russian oil this month for the first time in five years. Malaysia boosts subsidies In Malaysia, Prime Minister Anwar Ibrahim said on Sunday that the government had increased financial support from around 700 million ringgit ($178 million) to 3.2 billion ringgit in less than a week following the surge in global oil prices.
He said protecting the welfare of citizens and businesses remains a priority amid ongoing uncertainty, noting that the subsidies allow Malaysians to pay less than full market prices, as reported by the Qatar News Agency. Anwar added that the rise in oil prices is linked to disruptions in the Strait of Hormuz, one of the world’s main oil transit routes. He noted that although Malaysia is an oil-producing country, it imports more oil than it exports, with about 50% of its supplies passing through the strait. Pakistan sees surge in airfares In Pakistan, air ticket prices have risen sharply following Eid al-Fitr, driven by increased seasonal demand and higher fuel costs. The Express Tribune reported, citing aviation sector sources, that domestic ticket prices rose between 15% and 20% during the holiday period compared to pre-Eid levels, with some travellers paying up to 30% more.
Sources said the increase was due to strong travel demand as well as a sharp rise in jet fuel prices, which have doubled in Europe and increased by nearly 80% in Asia since the start of the US-Israeli war on Iran in late February. Sri Lanka raises fuel prices In Sri Lanka, the government has raised fuel prices by around 25%, citing rising global oil costs and declining domestic reserves following weeks of panic buying.
The latest increase, the second in two weeks, has pushed local fuel prices up by roughly one-third since the start of the Middle East war.
According to the Associated Press , authorities have also introduced strict fuel rationing and ordered the closure of schools, universities and government offices every Wednesday. Long queues of vehicles continue to form at fuel stations across the country.