South Korea’s president calls on citizens to “save every drop of fuel” and “take public transportation to cope with the energy crisis.”

By Bao Yilong

Source: Wall Street News

South Korea has launched a $17 billion emergency plan, including fuel price caps, fuel tax cuts, and alternative supplies for chemical feedstocks. India, Australia and other countries have simultaneously rolled out crisis responses. JPMorgan warned that the energy shock triggered by the Iran war will spread from Asia to Africa, Europe and the United States.

Energy shortages are hitting Asian economies. South Korea has called on the entire nation to conserve energy, with multiple countries entering crisis response mode.

On Thursday, April 2, South Korean President Lee Jae-myung delivered a speech urging all South Koreans to “save every drop of fuel” and unveiled a $17 billion emergency relief package to ease the impact of surging fuel prices on households and businesses.

This marks one of the most direct crisis statements from a major Asian energy importer to date. Meanwhile, India, Australia and other economies highly dependent on Gulf energy supplies have also adopted emergency measures, marking a full escalation of Asia’s energy crisis response.

According to analysts at JPMorgan, the energy shockwave stemming from the Iran war has struck Asia first, with Africa, Europe and the United States — especially West Coast states — set to face pressure in succession.

### South Korea enters crisis mode, $17B emergency plan implemented

Lee struck an unusually stern tone in his address, characterizing the current crisis as one of the most severe energy shocks in history. He stated:

“I sincerely urge all citizens to actively participate in energy conservation in daily life, such as using public transportation and saving energy.”

Lee also warned:

“The current crisis is not a passing shower that will subside quickly, but a massive storm of uncertain duration, making it all the more serious.”

Lee’s administration has rolled out a comprehensive set of emergency measures: imposing price caps on fuel, expanding fuel tax reductions, and actively pursuing alternative supply sources for key petrochemical and fertilizer feedstocks including naphtha and urea. Separately, Seoul announced it would delay the shutdown of coal-fired power plants and lift generation limits on coal power.

### Multiple Asian countries follow suit, global petrochemical supply chain under pressure

Crisis responses are advancing in tandem across other energy-importing economies in Asia.

India has ordered its domestic coal-fired power plants to maximize electricity output. Australian officials have urged residents to use public transport instead of private cars, as the country has seen a sharp rise in fuel shortages in recent days.

This energy shock will not be confined to the energy sector alone. It will transmit downstream through basic feedstocks such as naphtha into the petrochemical supply chain, eventually affecting plastics and nearly all consumer goods.

The founder of energy consulting firm KSG noted that since a vast number of global goods rely on plastic for packaging and transportation, a wide range of daily consumer products will be affected. Shortages and price hikes in petrochemicals will gradually spread to textiles, detergents, food, beverages and other sectors.

Schwartz, co-founder of supply chain analytics firm Altana, stated that shocks in the petrochemical market have a “multiplier effect” — meaning a single cost increase is amplified at every stage of the industrial chain.

Data from Altana shows that the Gulf region ships roughly $733 billion worth of petrochemical feedstocks, intermediates and finished products, which in turn affect an estimated $38 trillion in downstream goods — ranging from toothpaste to towels, covering nearly all categories of daily consumer products.

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