In brief
- World governments are already thinking about how to reduce the economic impact of the War in the Middle East.
- Responses vary widely, from implementing fuel caps to closing universities to conserve power.
Governments around the world are taking or plan to take action to reduce the impact the US-Israeli war on Iran has on their economies as the price of oil surges.
South Korea plans fuel cap
South Korean President Lee Jae-myung said on Monday authorities would cap domestic fuel prices for the first time in almost 30 years. The country will also look for sources of energy beyond supplies shipped via the Strait of Hormuz, and a $US67 billion ($96 billion) market-stabilisation program should be expanded if needed, he said.
Japan tells national oil reserve site to prep for release
The Japanese government instructed a national oil reserve storage site to prepare for a possible release of crude, Akira Nagatsuma, a member of the Centrist Reform Alliance opposition party, told Reuters on Sunday. Details such as the timing of the release remain unclear, Nagatsuma said.
Vietnam to remove fuel import tarrifs
Vietnam plans to remove import tariffs on fuels to ensure supplies amid disruptions, the government said, adding the measure was expected to last until the end of April.
Indonesia to increase fuel subsidies
Indonesia will increase the amount it has allocated for fuel subsidies in its state budget, its finance minister said on Monday. The country has budgeted $US22.5 billion ($A32.2 billion) for energy subsidies and to compensate state firm Pertamina and utility company PLN for their efforts to keep some fuel prices and electricity tariffs at an affordable level.
China asks refiners to suspend fuel exports
China has asked refiners to halt signing new contracts to export fuel and to try to cancel shipments already committed, sources with knowledge of the matter said last week. The guidance did not apply to jet fuel refuelling for international flights, bonded bunkering or supplies to Hong Kong or Macau, they said.
Bangladesh to close all universities
Bangladesh will close all universities from Monday, bringing forward the Eid al-Fitr holidays as part of emergency measures to conserve electricity and fuel.
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