Middle East Conflict Triggers Fuel Restrictions Across Asia

Several Asian countries have introduced emergency energy measures as disruptions linked to the ongoing military situation in the Middle East continue to impact global fuel supplies.

Sri Lanka on Sunday began distributing fuel under a mandatory QR code system aimed at controlling consumption and managing limited reserves. According to the Ministry of Energy, the system took effect at 6:00 a.m. local time, and fuel stations will no longer dispense fuel to vehicles without a registered QR code.  

Under the new weekly quota system, vehicles will receive allocations based on type, including 60 liters for buses, 15 liters for cars, 40 liters for vans, 200 liters for lorries, and smaller amounts for motorcycles, three-wheelers, and other categories. Authorities said supply chain disruptions and rising domestic demand required tighter management of fuel stocks. The ministry also cited illegal hoarding and fuel racketeering as factors contributing to increased demand.

Bangladesh has closed all public and private universities and advanced Eid al-Fitr holidays as part of emergency measures to conserve electricity and fuel. The country has also introduced fuel rationing amid a worsening energy situation linked to regional instability.  

In the Maldives, which relies entirely on imports for electricity and transportation and faces significant external financial obligations, authorities have so far not announced similar emergency measures.

Meanwhile, India has received requests from neighboring countries — including Bangladesh, Sri Lanka, and the Maldives — seeking energy assistance as global oil flows face disruption. India has invoked emergency powers to prioritize domestic fuel supplies and introduced rationing measures for cooking gas.

Pakistan has closed schools, while Bangladesh has limited fuel sales as part of broader conservation efforts.

Broader Regional Impact 

Economists and officials across Asia have warned that continued instability could lead to inflationary pressure, higher production costs, and slower economic growth. 

In Malaysia, authorities said disruptions to global oil and gas supply chains may push up inflation in the coming months. Although the country recorded relatively low inflation in 2025, recent geopolitical tensions could increase logistics and production costs.

For fuel-importing countries such as Nepal, higher global energy prices could raise consumer costs and contribute to inflation and slower economic growth. Experts warned that prolonged disruption in key maritime routes, including the Strait of Hormuz, could have widespread economic consequences extending far beyond the Middle East.

In Southeast Asia, governments are taking additional steps to manage potential shortages. Some countries have adjusted work schedules, encouraged remote working, or introduced transport restrictions to reduce energy consumption. 

Thailand has directed its Ministry of Energy to secure alternative energy sources within a week to reduce reliance on Middle Eastern supplies. Officials confirmed that the country maintains significant fuel reserves and has approved urgent additional LNG purchases to stabilize supplies.

As tensions continue to affect global energy markets, regional governments are accelerating contingency plans to safeguard fuel availability, stabilize prices, and protect economic activity.