Asian governments are allocating billions of dollars in subsidies to protect consumers from the impacts of rising oil prices resulting from the ongoing US-Israeli war with Iran.

Here are the measures taken by various governments across Asia, where a majority of oil from the Middle East is directed.

Japan

The Japanese government is utilizing 800 billion yen (approximately S$6.4 billion) from reserve funds to finance subsidies aimed at keeping gasoline prices at around 170 yen per liter on average. This initiative could cost up to 300 billion yen each month.

South Korea

In late March, South Korea's budget ministry proposed a supplementary government budget of 26.2 trillion won (about S$22.3 billion) to support low-income earners, youth, and businesses in light of soaring oil prices.

This marks the second additional budget in less than a year under President Lee Jae Myung's administration, with parliamentary approval expected by April 10.

Indonesia

Jakarta has set aside 381.3 trillion rupiah (around S$28.8 billion) for energy subsidies and to compensate state energy company Pertamina and utility company PLN for maintaining affordable fuel prices and electricity tariffs.

The Indonesian government has kept subsidized fuel prices stable while evaluating adjustments for non-subsidized fuels and has implemented a sales limit of 50 liters per day per vehicle.

Additionally, Jakarta plans to implement a work-from-home policy for civil servants on Fridays and reduce its free meal distribution to five days to save trillions of rupiah in fuel subsidies.

Philippines

The Philippine energy ministry announced the activation of a 20 billion pesos (approximately S$427 million) emergency fund to enhance fuel security.

The initiative includes plans for the government to acquire up to two million barrels of fuel to bolster domestic supply, alongside purchasing refined products and liquefied petroleum gas.

Thailand

Finance Minister Ekniti Nitithanprapas indicated that measures to mitigate the economic impact of rising oil prices will be proposed at the new government’s first cabinet meeting on April 6.

The government aims to implement an oil tax reduction, a borrowing guarantee for an oil subsidy fund, and additional support measures. Last month, Prime Minister Anutin Charnvirakul directed civil servants to conserve energy and encouraged the public to carpool.

Vietnam

Vietnam has suspended environmental protection and special consumption taxes on gasoline, diesel, and jet fuel until April 15 to stabilize the domestic market, with a potential extension until the end of June.

This tax suspension is expected to reduce state revenue by 7.2 trillion dong (around S$350 million) monthly, according to the finance ministry.

Malaysia

Malaysia is now spending four billion ringgit (approximately S$1.3 billion) monthly, an increase from the previous 700 million ringgit, to maintain the fixed price of a commonly used transport fuel and provide cash assistance to some diesel vehicle operators.

Government employees and those in state-linked companies will also begin working from home this month as part of initiatives to save on energy costs.

India

India has reduced excise duties on petrol and diesel, leading to a revenue loss of 70 billion rupees (approximately S$970 million) every fortnight while imposing windfall taxes on aviation fuel and diesel exports to recoup some of its revenue.

Australia

Prime Minister Anthony Albanese announced that the government will halve the excise on fuel and diesel and eliminate the heavy road user charge for three months, which will cost the government A$2.55 billion (around S$2.3 billion).

Australia will also offer up to A$1 billion in interest-free loans to essential businesses, including transport operators and fertilizer producers.

New Zealand

New Zealand has announced temporary financial support of NZ$50 (approximately S$37) weekly starting in April for low-income families as rising fuel prices due to the conflict in the Middle East strain household budgets.

This policy is projected to cost a total of NZ$373 million if maintained for the full year, as stated by Finance Minister Nicola Willis.

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