Manila, Philippines. Southeast Asian economies are taking emergency steps to limit the impact of the escalating Iran war as higher fuel costs and supply disruptions affect power markets and key industries.
Philippines suspends spot electricity sales
The Philippines on Thursday suspended spot electricity sales until further notice, citing fuel supply risks and price volatility. The move was ordered under a state of national energy emergency and is intended to cushion consumers from a projected 16% increase 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, while coal and natural gas plants will be compensated under fixed or contracted pricing structures.
Thailand fishing industry hit by diesel price surge
In Thailand, a sharp rise in diesel prices linked to the same conflict is pushing the country’s multibillion-dollar fishing industry toward 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 said that if diesel prices reach 40 baht per litre, fishing trips will become economically unviable. Prices have risen to nearly 39 baht per litre following the removal of subsidies, up from about 30 baht in February.
Fishermen said they are slowing vessels to conserve fuel, resulting in smaller catches and shrinking incomes. One fisherman said, “We can’t live like this,” while others said they may soon be unable to support their crews and families.
Thailand exported $7 billion in fishery products in 2024, but industry groups described the current fuel crunch as the worst in decades and said it now threatens supply chains and food availability. The government is preparing support measures, including subsidised biodiesel, while officials said the country holds around 100 days of oil reserves.
Regional interventions widen
Across the region, governments are increasingly intervening to stabilise energy costs as the conflict’s economic toll deepens.
How do you think rising fuel costs will affect household expenses and food prices in your area?