From Asia to Africa, governments have rolled out tax cuts, rationing plans and emergency fuel measures as the Strait of Hormuz disruption deepens pressure on import-dependent economies.
Governments move to contain the fallout from the energy shock
With the outbreak of conflict involving the United States, Israel and Iran, countries around the world have introduced emergency measures in response to the resulting energy crisis. The closure of the Strait of Hormuz has disrupted the transit of nearly 20% of global oil supply and a similar share of liquefied natural gas, LNG. Despite the announcement of a two-week ceasefire, the crisis is expected to continue because of damage to energy infrastructure in the Middle East and persistent political uncertainty.
The International Energy Agency, IEA, has described the current situation as the largest supply disruption in the history of the oil market, exceeding the shocks of the 1970s in both scale and systemic impact.
For the economies of Asia and Africa, marked by structural dependence on energy imports from the Gulf, the crisis has forced the adoption of unprecedented measures. These interventions, ranging from steep cuts in fuel taxes to strict rationing protocols and even a return to coal use, have shown that energy security and social stability should be treated as absolute priorities.
At least 60 countries have adopted emergency measures
As Carbon Brief has highlighted, at least 60 countries have adopted emergency measures since the start of the war involving the United States, Israel and Iran. Nearly 30 states, from Norway to Zambia, have cut fuel taxes to help citizens struggling with rising costs. This appears to have been the most common political response to the crisis.
Some countries have accelerated the construction of renewable energy plants. Others, including Japan and South Korea, have chosen to rely more heavily on coal, at least in the short term. In Italy too, the coal phase-out has been pushed back to 2038, while the power plants in Brindisi and Civitavecchia may return to more structured production.
Asia’s response, between tax relief and forced austerity
Asia, which absorbs 75% of the oil and 59% of the LNG passing through Hormuz, has emerged as the region most exposed to the shock. Governments have responded with a mix of multi-billion subsidies and emergency measures aimed at reducing consumption.
India has adopted one of the region’s most structured responses. On March 27, 2026, Finance Minister Nirmala Sitharaman announced a cut in excise duties on petrol and diesel. Although the measure placed heavy pressure on government revenues, it was seen as necessary to protect consumers from the surge in prices, which rose from 70 dollars to 122 dollars per barrel in just one month.
Alongside the tax cuts, the Indian government introduced restrictive measures to secure domestic supply. It imposed export duties of 21.5 rupees per litre on diesel and 29.5 rupees per litre on aviation turbine fuel, ATF, to discourage refiners from selling abroad. Prime Minister Narendra Modi sought to reassure the country by stating that India has 53 lakh, 5.3 million, metric tonnes of strategic oil reserves, with a further 65 lakh under development.
Because of the LNG shortage, the government also rationed commercial LPG use, giving priority to household consumption. It temporarily restored kerosene supply through the public distribution system, PDS, in 21 states to ease pressure on cooking gas costs.
Local newspaper The Economic Times reported that the government also introduced customs duty exemptions on selected petrochemical feedstocks until June 30, 2026, to shield the pharmaceutical and manufacturing sectors from rising input costs.
Southeast Asia, rationing and cancelled flights
In Vietnam, the aviation sector had to cut 23 domestic flights a week to preserve fuel stocks, while Indonesia introduced a rationing cap of 50 litres a day for private vehicles and ordered public sector employees to work from home every Friday.
In late March 2026, the Philippines became the first country to formally declare a national energy emergency, given the far-reaching consequences for the archipelago, which is heavily dependent on oil imports. There, a transport workers’ strike, combined with fuel shortages, pushed the government into crisis, with officials engaged in urgent talks with Russia and China for emergency supplies.
Africa’s energy crisis, vulnerability and local responses
Many African states, despite exporting crude oil, depend on imports of refined products from the Middle East. This leaves them highly exposed to disruptions along Gulf shipping routes and to rising marine insurance costs. Across Sub-Saharan Africa, the shock has once again exposed how fragile fuel supply chains remain when refining capacity and logistics are constrained.
In Egypt, authorities ordered shops and restaurants in March to close by 9 p.m. Until the end of April, commercial premises will be required to close no later than 11 p.m.
Nigeria, Africa’s largest economy, saw petrol prices jump from 800 to 1,500 naira per litre within a matter of weeks. Because the national power grid is subject to repeated collapses, 12 in the first half of 2024 alone, followed by new failures in 2026, the country relies on a generator-based economy worth 14 billion dollars a year. Diesel prices, which rose to nearly 2,000 naira per litre, have made daily life and SME operations unsustainable, pushing many households to spend up to 90% of their income on energy and transport.
Kenya and the Horn of Africa, rationing and humanitarian impacts
In Nairobi, many filling stations ran dry in mid-March 2026. Martin Chomba, head of the Petroleum Outlets Association, told Bloomberg at the end of March that major suppliers had begun rationing fuel, leaving rural areas underserved.
The humanitarian impact has been severe. The International Rescue Committee, IRC, warned that diesel shortages are disrupting vaccine cold chains and the operation of medical equipment in the Kakuma and Dadaab refugee camps.
In Ethiopia, the government introduced absolute priority rules for fuel allocation, favouring public transport and agriculture over private use, while diesel prices rose from 80 dollars to 230 dollars per barrel. For countries such as Ethiopia and Kenya, this is not only an energy issue, but also a wider pressure point for food systems, public services and economic resilience.
Fiscal emergency measures in South Africa and Southern Africa
South Africa’s government adopted a pragmatic approach. On April 1, 2026, it introduced a temporary one-month reduction in the general fuel levy. Even so, currency instability and higher shipping costs still led to record price increases.
Other countries in the region followed similar paths. Namibia cut fuel taxes by 50% for three months. Zambia suspended duties for three months and removed VAT on petrol and diesel imports. Zimbabwe raised the ethanol blend in petrol to 20% and cut import taxes to contain prices, which had climbed 40% in one month.
A return to coal
Again according to Carbon Brief’s analysis, at least eight countries have announced plans to increase coal use or revise their existing coal phase-out strategies. Alongside Italy, the list includes Japan, South Korea, Bangladesh, the Philippines, Thailand, Pakistan and Germany.
In most cases, these countries have postponed the closure of coal-fired power plants or allowed older facilities to operate at higher output, as in Japan, rather than building new plants. For one year starting in April, the Japanese government will allow the full operation of older, less efficient coal plants that had previously been running at reduced capacity to limit carbon dioxide emissions.
