West Asia War Sparks Energy Crisis: How India And Its Neighbours Are Responding

The ongoing war has squeezed energy supplies and pushed prices higher, forcing economies already dealing with inflationary pressures to act swiftly.

India, one of the world’s largest importers of crude oil, has opted for a combination of fiscal relief and supply-side interventions.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• South Asian nations implement varied measures to counter rising energy costs.
• India reduces taxes, directs fuel production; Pakistan curtails government fuel use.
• Bangladesh limits office hours; Nepal shifts to electric vehicles, raises fuel prices.

As the conflict involving the United States, Israel and Iran continues to disrupt global energy markets, countries across South Asia are scrambling to contain the fallout. With the region heavily dependent on imported fuel and home to nearly a fifth of the world’s population, governments are rolling out a mix of fiscal, administrative and behavioural measures to manage rising costs and supply constraints.

The ongoing war has squeezed energy supplies and pushed prices higher, forcing economies already dealing with inflationary pressures to act swiftly.

India Focuses On Supply Management And Tax Adjustments

India, one of the world’s largest importers of crude oil, has opted for a combination of fiscal relief and supply-side interventions.

The government has reduced excise duties on petrol and diesel in a bid to cushion consumers from rising global prices. At the same time, windfall taxes have been imposed on aviation fuel and diesel exports, reflecting an attempt to balance domestic availability with revenue considerations.

In addition, emergency measures have been activated to divert gas supplies from non-priority sectors to critical users. Oil refiners have also been directed to increase the production of liquefied petroleum gas (LPG), ensuring adequate availability for households.

These steps indicate a calibrated approach that seeks to stabilise domestic supply without immediately passing on the full burden of global price increases to consumers.

Pakistan Turns To Austerity Measures

Pakistan has adopted a more stringent approach, focusing on curbing demand through administrative restrictions, reported Reuters.

Government departments have been instructed to cut fuel allowances by 50 per cent for two months. The work week for public offices has been reduced to four days, and offices are operating with only half their staff physically present.

The measures extend beyond government functioning. The Pakistan Super League, a major sporting event, has been moved behind closed doors to limit energy consumption.

These steps highlight the extent of pressure on Pakistan’s energy resources, with demand management emerging as the primary strategy.

Bangladesh Cuts Consumption And Limits Usage

Bangladesh has also moved to reduce energy consumption across sectors.

Offices and banks are now operating for shorter hours, while shopping malls have been asked to close by 7 PM. Authorities have urged offices to limit power use, including cutting down on excessive lighting.

The government has also imposed a ban on decorative lighting at events and placed restrictions on non-essential travel. Public offices are being directed to reduce fuel consumption as part of a broader push to conserve energy.

The focus in Bangladesh remains on behavioural changes and efficiency measures to manage limited resources.

Nepal Pushes Structural Changes Alongside Rationing

Nepal’s response combines immediate restrictions with longer-term structural shifts.

The government has extended the weekly holiday for schools and public offices from one day to two, reducing overall energy usage. At the same time, it is working on legal provisions to convert petrol and diesel vehicles to electric alternatives.

Fuel prices have been raised, with aviation fuel costs more than doubling to prevent supply disruptions. Cooking gas is also being rationed, reflecting tight supply conditions.

Nepal’s approach underscores both the urgency of the current crisis and the need for structural transition in energy consumption.

Sri Lanka And Maldives Take Targeted Steps

Sri Lanka has introduced targeted measures to stretch available fuel supplies. A mid-week public holiday has been declared to reduce consumption, while train and bus services have been curtailed. Power tariffs have also been increased for both households and industries.

Meanwhile, the Maldives is seeking external support, including fuel supplies from India. Domestic fuel prices have been raised to ensure continued availability, signalling a reliance on both pricing mechanisms and international cooperation.

A Region Under Pressure

The responses across South Asia reveal a common theme: balancing limited supply with rising demand in a volatile global environment.

As the conflict continues, the effectiveness of these measures will depend on both the duration of the crisis and the resilience of domestic systems.

For South Asia, the current situation reinforces the importance of energy diversification, efficiency and strategic reserves. While immediate measures may help manage the shock, the longer-term challenge lies in reducing vulnerability to external disruptions.

For now, governments across the region remain in crisis-management mode, navigating a complex landscape shaped by geopolitics, market volatility and domestic economic pressures.

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