APAC Brief: Asia's Fuel Crisis Turns Violent as Robberies and Killings Spread
Fuel robberies and killings reported in Bangladesh, Pakistan, India. Australian state triggers emergency powers. Asian governments spend billions in subsidies. India diesel exports to SE Asia hit 7-year high. Coal makes comeback across Asia.
The crisis has turned deadly on the ground. Gas is being stolen, and fuel station workers in Bangladesh, Pakistan, and India have been killed over shortages and high prices. An Australian state has triggered emergency powers. Asian governments are spending billions in subsidies they cannot sustain. And overnight, Trump's "Stone Ages" speech sent oil surging — Brent jumped 8%, US crude soared 11%.
Commodity snapshot (as of April 3)
- Brent crude: surged 8% after Trump's speech — Dated Brent hit $140/barrel, highest since 2008
- WTI crude: jumped 11% — biggest one-day increase in six years
- US gas: $4.08/gallon, diesel $5.51/gallon
- US F-15E shot down over Iran — first US warplane loss, one crew member missing
- Iran hit Gulf refineries — Kuwait desalination plant, Abu Dhabi gas plant struck
Fuel violence spreads across South Asia
Gas is being stolen from vehicles and stations. Workers at petrol stations in Bangladesh, Pakistan, and India have been killed during robberies and disputes over fuel shortages and soaring prices. The Guardian described a day in Asia's fuel crisis as stretching from farms in New Zealand to factories in Delhi. The unrest is set to worsen the longer the war lasts. Vietnam and Thailand are rolling out energy-saving measures including limits on air conditioning and flight cuts. Closed fuel station signs are becoming a defining image of the crisis.
Australian state triggers emergency powers
An Australian state government triggered emergency powers amid the fuel crisis, forcing fuel suppliers to provide detailed information on their supply chains. Australia sources most of its jet fuel from Asia — particularly China, Singapore, and South Korea — but those countries rely on the Middle East for crude oil, creating a cascading vulnerability. Despite the April 1 excise cut saving drivers 26 cents per litre, wholesale prices continue climbing. Economists warn the excise cut may be a "sting in the tail" that keeps inflation elevated longer.
Pakistan petrol up Rs137/litre; governments spend billions in subsidies
Pakistan hiked petrol to Rs458 per litre and diesel to Rs520 — the second massive hike in a month, with petrol up Rs137 and diesel up Rs184. The government announced 30 days of free public transport in Islamabad and Punjab after protests over the 40% increase. Across the region, Asian governments are spending billions in subsidies to shield consumers, but the fiscal burden is unsustainable. South Korea's President Lee urged citizens to "save every drop of fuel," describing a "war-like situation." India's diesel exports to Southeast Asia hit a 7-year high in March — Indian refiners cashing in on crisis margins — even as India faces its own LPG shortage. A seventh Indian LPG tanker (Green Sanvi) successfully crossed the Strait of Hormuz. The US has overtaken the UAE as India's largest LPG supplier — a structural shift.
Coal makes a comeback, nuclear is next
The Iran war is rewiring Asia's energy future. Fortune reported the closed Strait of Hormuz is forcing Asia to look backwards — to coal — and forwards — to nuclear energy and EVs — simultaneously. Japan is relaxing rules to boost coal-fired power for a year. Countries across the region are burning more coal as LNG from the Middle East faces complete cutoff. The crisis is accelerating conversations about nuclear power that were politically impossible months ago.
Trump's speech sends oil surging
Trump's Wednesday address — where he threatened to bomb Iran "back to the Stone Ages" and said the war would continue for two to three more weeks — sent shockwaves through Asian markets. Oil surged overnight, with Asian stocks falling sharply as Southeast Asian countries that rely heavily on oil imports absorbed the news that there is no quick end in sight. The NYT reported Trump "did not define a clear path out of the conflict." Politico quoted GOP members asking "What the hell did he just say?"
What to watch
An F-15E Strike Eagle was shot down over Iran on Friday — the first US warplane loss — with one crew member missing. An A-10 also crashed near the Strait of Hormuz. This escalation raises the stakes dramatically heading into the weekend. Good Friday closures mean markets won't react until Monday. The April 6 deadline for Iran to reopen the strait is Sunday — and US intelligence warns Iran is unlikely to comply because the strait is its only real leverage.
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