Emerging Asian nations are currently relying on short-term fixes such as fuel price caps, work-from-home mandates, and increased coal usage to shield their citizens from volatile energy markets. However, these temporary measures often strain national budgets through heavy subsidies and risk stalling long-term climate goals, according to the authors of the newly released report.
“The energy price swing driven by geopolitics in 2022 prompted economies to implement emergency fiscal measures, such as subsidies to cushion short-term price shocks,” the report states. It also highlights that “Thailand has announced a price cap on diesel for 15 days” to manage the immediate impact of the crisis.
In simple terms, when the cost of oil and gas suddenly jumps because of global conflicts, governments in countries like Thailand and the Philippines step in to keep prices low for their people. They do this by paying for part of the fuel costs themselves or by encouraging people to stay home so they use less gasoline. While this helps families in the short run, it costs the government a lot of money and sometimes forces them to burn more polluting coal to keep the lights on, which can lead to even bigger financial and environmental problems later.
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.
