# Oil Shortage Begins to Impact Southeast Asia

The oil shock triggered by the US-Israel-Iran conflict is spreading across Southeast Asia. Rising oil and gas prices are disrupting people's lives. In the Philippines, Vietnam, Cambodia, Laos and other countries, gas stations have run out of supply, and fishermen, tuk-tuk drivers and truck drivers face shutdowns. Some temples in Thailand have even been unable to maintain cremation services.

International crude oil futures prices broke through the $100 per barrel mark again on the evening of the 15th as the new week's trading began. The US, Germany, Japan, South Korea and other countries have all decided to release strategic petroleum reserves. Many Southeast Asian countries have very limited oil reserves. Japan and South Korea's reserves can support over 200 days, while Indonesia and Vietnam have only about 20 to 23 days of reserves, Myanmar about 40 days, and Thailand about 100 days. Southeast Asia is highly dependent on oil transported through the Strait of Hormuz. Nearly 80% of crude oil imports come from the Persian Gulf, and about one-quarter of liquefied natural gas must also pass through this strait.

The Philippine government is distributing approximately $84 in subsidies to tens of thousands of motorcycle tuk-tuk and jeepney drivers in Manila. In Laos, due to reliance on supply from Thailand which faces the same fuel shortage, over 40% of gas stations have closed due to supply disruptions. Similarly, in Cambodia, which imports fuel from Thailand and Vietnam, nearly one-third of gas stations have suspended operations.

In Vietnam, the government strongly recommends non-essential office employees work from home. Thai government officials have put on short-sleeved shirts and called on civil servants to follow suit, as air conditioning temperatures in government office buildings have been raised to approximately 26 degrees Celsius.

Thailand announced it has signed new oil purchase contracts with Angola and the US. However, it also stated that because it can no longer borrow more funds from the national oil fund, it must allow oil prices to rise. The chairman of Thailand's Land Transport Federation, Thonyoi Kongkun, criticized the government as "incompetent and poorly managed," and led dozens of truck drivers to park their vehicles along roads leading to Laem Chabang Port in protest. Thailand's fishing industry has also been affected, with some fishermen unable to afford going out to sea. The head of a coastal fishermen's organization in Samut Prakan Province said: "This crisis is happening abroad, but it is we who are suffering." Gas cannot be found anywhere, there are queues at every gas station, and some stations have closed directly. Fuel begins to be rationed, with some stations rationing 1000 baht, others 500 baht. The fuel shortage has affected Thailand's funeral industry. Multiple temples in Thailand have suspended free cremation services because the cremation process mainly uses diesel, and many gas stations report running out of diesel to sell. Remote temples in Thailand are hit hardest by the fuel shortage, with cremation fees rising approximately 25% to about 6000 baht per service.

For Myanmar, this oil shock is adding insult to injury. This month, the military government implemented odd-even license plate restrictions to conserve fuel.

Even in Singapore, the government has warned that electricity prices may rise. Last year, approximately 47% of the country's liquefied natural gas came from Qatar. Singapore's President Halimah Yacob stated that Singaporeans must "prepare for a prolonged global political turmoil storm."

Laos faces oil shortages in many areas. Chinese residents in Vientiane: nine out of ten gas stations have no oil to sell, with people waiting in line for at least two to three hours. Gas stations in multiple regions of Laos are experiencing long queues, with many people waiting hours to pump just a few liters of oil. Among over 2500 gas stations, more than 1000 have suspended operations due to supply shortages, representing over 40% of the total. Diesel prices have risen by over 40%, and high-octane gasoline prices have risen by over 30%. Electric bicycles, requiring no fuel, are currently sold out.

This is the result of war in the Middle East—the entire world picking up the tab!