As geopolitical tensions escalate and disrupt global energy flows, governments worldwide are rolling out emergency measures in response to a rapidly intensifying global energy crisis response. The closure of the Strait of Hormuz has halted nearly 20% of global oil supply and a comparable share of liquefied natural gas flows. Despite a two-week ceasefire announcement, the crisis is expected to persist due to damage to energy infrastructure across the Middle East and ongoing political uncertainty.
The International Energy Agency has described the current situation as the largest supply disruption in the history of the oil market, surpassing even the systemic shocks of the 1970s in both scale and impact.
For economies across Asia and Africa, structurally dependent on energy imports from the Gulf, the shock has forced the adoption of unprecedented interventions. These range from sharp fuel tax cuts to strict rationing protocols and even a temporary return to coal, reinforcing the idea that energy security and social stability are now overriding priorities.
At least 60 countries deploy emergency measures
According to monitoring by Carbon Brief, at least 60 countries have introduced emergency measures since the start of the conflict. Nearly 30 nations, from Norway to Zambia, have reduced fuel taxes to shield consumers from rising costs, making it the most widespread policy response.
Some countries have accelerated renewable energy deployment. Others, including Japan and South Korea, have opted to increase reliance on coal in the short term.
Asia’s response: subsidies and forced austerity
Asia, which absorbs 75% of oil and 59% of LNG transiting through Hormuz, has emerged as the region most exposed to the shock. Governments have responded with a mix of multi-billion dollar subsidies and emergency demand-reduction measures.
India has implemented one of the most structured responses. On March 27, 2026, Finance Minister Nirmala Sitharaman announced cuts to gasoline and diesel excise duties. While this significantly reduced government revenues, it was deemed necessary as prices surged from $70 to $122 per barrel in a single month.
Alongside tax cuts, the government introduced restrictive measures to safeguard domestic supply:
- Export taxes: Duties of 21.5 rupees per liter on diesel and 29.5 rupees per liter on aviation fuel to discourage exports.
- Stock management: Prime Minister Narendra Modi confirmed the country holds 5.3 million metric tons of strategic oil reserves, with an additional 6.5 million under development.
- Gas rationing: Commercial LPG use has been restricted, prioritizing households. Kerosene distribution through the public system has been temporarily reinstated in 21 states.
According to The Economic Times, the government has also introduced temporary tariff exemptions on selected petrochemical feedstocks through June 30, 2026, to protect manufacturing and pharmaceutical sectors.
Southeast Asia: rationing and flight cuts
In Vietnam, airlines have cut 23 domestic flights per week to preserve fuel supplies. Indonesia has imposed a 50-liter daily cap for private vehicles and mandated remote work for public employees every Friday.
The Philippines became the first country to formally declare a national energy emergency in late March 2026, as fuel shortages and transport strikes intensified pressure on the government. Authorities have entered urgent negotiations with Russia and China for emergency supplies.
Africa: structural vulnerability and local responses
Many African countries, despite exporting crude oil, rely heavily on refined fuel imports from the Middle East, leaving them highly exposed to disruptions in Gulf shipping routes and rising maritime insurance costs.
In Egypt, authorities ordered shops and restaurants to close by 9 p.m. in March, with a maximum closing time of 11 p.m. until the end of April.
Nigeria has experienced a dramatic surge in fuel prices, from 800 to 1,500 naira per liter within weeks. With a fragile national grid prone to repeated failures, the country depends on a $14 billion generator-based economy. Diesel prices nearing 2,000 naira per liter have made daily life increasingly unsustainable, forcing some households to spend up to 90% of their income on energy and transport.
Kenya and the Horn of Africa: humanitarian impacts
In Nairobi, fuel stations ran dry in mid-March. According to the Petroleum Outlets Association, suppliers began rationing fuel, leaving rural areas underserved.
The humanitarian impact has been severe. The International Rescue Committee warned that diesel shortages are disrupting vaccine cold chains and medical equipment in refugee camps such as Kakuma Refugee Camp and Dadaab Refugee Complex.
In Ethiopia, the government has prioritized fuel allocation for public transport and agriculture, as diesel prices rose from $80 to $230 per barrel.
Fiscal measures across southern Africa
South Africa has adopted a pragmatic approach, introducing a temporary one-month reduction in the general fuel levy starting April 1, 2026. However, currency instability and rising shipping costs have still driven record price increases.
Other countries have followed similar paths:
- Namibia: fuel taxes cut by 50% for three months
- Zambia: suspension of import duties and VAT on gasoline and diesel
- Zimbabwe: ethanol blending increased to 20% and import taxes reduced to curb a 40% monthly price surge
Coal makes a comeback
According to Carbon Brief, at least eight countries have announced plans to increase coal use or delay phase-out timelines. These include Italy, Japan, South Korea, Bangladesh, Philippines, Thailand, Pakistan and Germany.
In most cases, governments have postponed plant closures or increased output from existing facilities. In Japan, authorities will allow full operation of older, less efficient coal plants for one year starting in April, reversing previous emission-limiting restrictions.