Oil Crunch Hits East Asia
War in the Middle East is seriously disrupting eastern Asia's oil supplies, and countries across the region are responding based on their level of preparation. But even once this crisis passes, a growing shift of consumer habits could have staying power.
Oil Shock Ripple Effects Across Asia
REPORTER:
These tuk tuks are waiting to pump gas in Phnom Penh. With the war in the Middle East cutting off oil supplies, prices are way up—and these drivers who carry passengers for a living are feeling the pain.
Neang Ly (TUK TUK DRIVER):
Gas price[s have] greatly impacted my daily earnings. Customers pay me the same price via the Grab App and there are fewer people too since gas prices increased. I used to save and give my wife about [$12.50 US] before the war but nowadays I hardly save much.
REPORTER:
For now, at least, there is gas to go around. That’s not guaranteed for long, though. One local supplier is stopping sales on April 1. The Cambodian government is doing what it can, encouraging measures like replacing in person meetings with virtual ones. But Cambodia, like many countries in East Asia is having to adapt to a crisis that’s grown from weeks, to nearly a whole month now.
REPORTER:
In Japan, with its vast stockpiles beginning in the 1970’s, government help is on the way. Prime Minister Takaichi Sanae says Tokyo will begin its biggest-ever release of oil reserves on Thursday. That's on top of help the government rolled out last week.
Takaichi Sanae (JAPANESE PRIME MINISTER):
From March 19, we began providing subsidies to curb the prices of petroleum products such as gasoline, diesel fuel, and heavy oil. Through these measures, we will respond with full effort to minimize the economic impact.
REPORTER:
South Korea is going further, launching an energy-saving campaign for the whole country. It’s encouraging people to cut back on how long they take showers, and shift when they do laundry and charge their phones.
Kim Sung-whan (S. KOREAN ENERGY MINISTER):
Implementing a five-day rotation of driving restrictions for passenger cars could substantially reduce petroleum demand and be an effective short-term response to the energy crisis.
REPORTER:
In the Philippines, though, the oil shock has already reached crisis proportions. As of Tuesday, there was around 45 days’ fuel supply. The government has declared a year-long national emergency, with a committee making sure fuel, food, medicine, and other essentials can get where they need to go.
REPORTER:
This oil shock is bringing change to Asia—and not all of it from the top down. In China, some drivers are deciding now is the time to make the switch to electric vehicles.
Han Haili (GENERAL MANAGER, SHANGHAI JUINTU MG EXPERIENCE CENTER):
We expect to hire 10 or even more salespeople. Previously, we only had five and we simply can’t keep up with demand. Customers looking for cost-effective options are coming in to buy electric vehicles.
REPORTER:
Across East Asia, a far-off war is hitting home, shifting how people get around—changes that could leave a lasting mark even after peace returns.
