cross-posted from: https://news.abolish.capital/post/34115
The crisis provoked by the US and Israel's war on Iran is felt more sharply in Asia, where nations rely on the Strait of Hormuz for over 80 percent of their oil
Pakistani Prime Minister Shehbaz Sharif announced on 9 March sweeping austerity measures to curb domestic fuel consumption after oil prices briefly reached $120 a barrel due to the disruptions caused by the US-Israeli war on Iran.
“The entire region is currently in a state of war. Keeping this reality in mind, the government took difficult decisions for the country's economy,” Sharif said in his address.
He said oil prices were already above $100 a barrel and could rise further, forcing Islamabad to conserve reserves and take quick measures to reduce the need for fuel consumption across the country.
Measures in the public sector include a four-day workweek for government offices, and rotating work-from-home arrangements for half of the public staff.
The measures also involved two weeks of school closures, online classes for higher education, cuts to official fuel use, salary reductions for ministers and lawmakers, and restrictions on foreign travel and in-person government meetings.
Pakistani authorities said the plan was meant to “utilise the available reserves of oil in a judicious manner.”
Workers in Pakistan who depend on driving for their livelihoods report that rising petrol prices are eroding incomes and driving up the cost of everyday goods.
Elsewhere in Asia, Bangladesh imposed daily fuel-sale limits after what Reuters described as panic buying and stockpiling, with state-run Bangladesh Petroleum Corporation saying the curbs were meant to “restrain excessive demand, calm the public and keep nationwide stocks stable.”
Other Asian states activated contingency plans rather than immediate rationing, including fuel price caps, efforts to stabilize petrol prices, shifts in crude purchases away from Gulf routes, and reliance on reserves or alternative supply arrangements.
Asia is the epicenter of the war-induced energy shock since it relies on the Persian Gulf for over 80 percent of its oil.
Unlike the US, which is a net exporter, Asia faces a literal “energy panic.”
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