Middle East War Drives Energy Crisis Across Southeast Asia, Forcing Government Intervention

The Philippines on Thursday suspended spot electricity sales until further notice, citing fuel supply risks and price volatility. The move, ordered under a state of national energy emergency, aims to cushion consumers from a projected 16% surge in power bills.

The Energy Regulatory Commission said it is working to finalise a modified pricing scheme by April 1, noting that historical market prices no longer reflect conditions shaped by geopolitical tensions and fuel constraints. During the suspension, authorities will prioritise renewable energy and conserve fuel inventories, with coal and natural gas plants compensated under fixed or contracted pricing structures.

In Thailand, a sharp rise in diesel prices driven by the same conflict is pushing the country’s multibillion-dollar fishing industry towards a standstill. At Samut Sakhon, the country’s largest fishing port, more than half of trawlers are already docked, with the remainder expected to halt operations within days.

Industry leaders warn that if diesel prices climb to 40 baht per litre, fishing trips will become economically unviable. Prices have already surged to nearly 39 baht per litre following the removal of subsidies, up from about 30 baht in February. 

Fishermen say they are slowing vessels to conserve fuel, resulting in smaller catches and shrinking incomes. “We can’t live like this,” one fisherman said, as others warned they may soon be unable to support their crews and families.

Thailand exported $7 billion in fishery products in 2024, but the current fuel crunch — described by industry groups as the worst in decades — now threatens supply chains and food availability. The government is preparing support measures, including subsidised biodiesel, while officials say the country holds around 100 days of oil reserves.

Across the region, governments are increasingly intervening to stabilise energy costs as the conflict’s economic toll deepens.