Past global energy shocks have triggered significant inflation in Asian countries by causing the prices of imported natural gas and oil to skyrocket. According to the authors of the newly released report, these sudden cost increases force businesses to raise prices for goods and services while simultaneously putting downward pressure on local currencies. The report highlights that during the 2022 energy crisis, “gas prices averaged more than US$50/MMBtu and reached US$100/MMBtu at their peak, spiked as much as tenfold compared with pre-conflict gas prices.” These extreme market conditions “intensified inflationary pressures and contributed to cost-push inflation” in nations like Thailand and Singapore. In simple terms, when the cost of the fuel used to generate electricity or run transport surges globally, countries that rely on imports find it much more expensive to keep their economies running. These higher expenses act as a “cost-push,” where businesses are forced to pass their increased bills for power and logistics onto their customers; as a result, the price of everything from groceries to home utilities goes up, even as the local currency loses its buying power on the international market. The report “Overcoming fossil lock-in is pivotal for Asia to buffer against energy shocks” was published by the UK-based energy think tank Ember on March 23, 2026. Authored by senior energy analysts Dinita Setyawati and Muyi Yang, the briefing explores how recent geopolitical conflicts are exposing the vulnerability of Asian economies to fossil fuel price volatility and supply disruptions.
