Asia Grapples with Fuel and Helium Shortages Amidst Middle Eastern Tensions
Across Asia, ordinary citizens and vital industries are feeling the pinch as escalating geopolitical tensions in the Middle East disrupt crucial supply chains, leading to severe fuel shortages and impacting the production of advanced technologies. From taxi drivers struggling to fill their tanks to semiconductor manufacturers facing a critical shortage of a vital gas, the ripple effects are being felt from the streets of Colombo to the advanced manufacturing hubs of East Asia.
Fuel Woes Hit Everyday Life
In Sri Lanka, the impact is starkly evident. Chathura, a taxi driver whose livelihood depends on shuttling tourists between popular beach destinations, is now frequently grounded. The government’s introduction of weekly fuel quotas, severely limiting drivers to just 15 litres for cars and 5 litres for motorbikes, has made his daily work impossible. “It’s my birthday today, but I am staying home because clients are cancelling tours due to the fuel situation,” he lamented. “The fuel quota is not enough even for two days.” Sri Lanka is not alone; many nations across Asia are scrambling to manage fuel supplies as the conflict involving the US and Iran has disrupted supply chains originating from the Middle East. A significant factor in this disruption is Iran’s blockade of the Strait of Hormuz, a critical chokepoint through which approximately 80 per cent of Asia’s oil and liquefied natural gas (LNG) passes.
The scarcity extends beyond transportation. In New Delhi, India, Ram Bahadur Shahni, a 35-year-old street vendor who has long relied on his earnings to support his family, is facing a crisis in securing basic cooking fuel. “For the past week, I’ve been struggling to get an LPG cylinder,” he stated. “If I find one, the price is so high, 300-400 INR ($4-6) per kilogram. How can we afford that when we only earn 400-500 INR a day?” With supplies dwindling, Shahni has been forced to resort to cooking with firewood, a move that could lead him to return to his village if the situation doesn’t improve. Zulfiqar Ali, who operates a tea stall, fears the soaring gas prices could force his business to close. “I can’t afford another [gas cylinder], so I may have to close,” he said, highlighting the precarious situation for small businesses.
Professor Shahriar Akter, a researcher from the University of Wollongong with strong ties to South Asia, noted the region’s particular vulnerability. “South Asian gas stations are being shut — many are already sold out,” he observed. “In a country like India, cremation is also reliant on these natural gases. Some of those crematory places are now being shut because there is no supply of these gases.”
Innovative Measures and Economic Concerns
In response to the energy crunch, some countries are implementing unconventional strategies. The Philippines and Vietnam have adopted a four-day working week, while Thailand has encouraged professionals to wear lighter clothing instead of suits to reduce air conditioning costs and promote working from home. Thailand, heavily reliant on Middle Eastern imports, with about 50 per cent of its crude oil and 30 per cent of its LNG passing through the Strait of Hormuz, is particularly exposed. The Thai government has pledged to freeze cooking gas prices until May and is exploring gas procurement from Russia, whose exports have seen an uptick following the lifting of sanctions related to the Ukraine conflict.
Itsaret Poungthong, a fishery biologist in Thailand, identified rising fuel prices as the most significant impact on his daily life. He noted that some businesses are adapting by cutting back on energy consumption, such as dimming lights and shortening operating hours.
In Indonesia, the economic strain is palpable. A mother in East Java, identified only as Setiawati, has been diligently managing her budget during Ramadan, seeking out cheaper food and drink options. Her primary concern is the potential spillover effect of the Middle Eastern conflict into household expenses. “What I’m worried about is if the impact of the Iran conflict eventually reaches our kitchen,” she expressed. “Usually when oil prices go up, everything else follows.”
Economist Bhima Yudhistira from the Centre for Economic and Law Studies in Jakarta warned that rising energy and food costs are squeezing household budgets across Indonesia. “If fuel and LPG prices increase, many middle-class families could fall into poverty,” he cautioned. “In the worst-case scenario, Indonesia could slip into a technical recession in the second quarter of 2026.” Yudhistira suggested that the government might need to reallocate funds from less critical programs, such as the free meals initiative, towards energy subsidies and social protection measures.
A Global Helium Crisis Unfolds
Beyond the more visible fuel shortages, a less discussed but equally critical resource is facing unprecedented pressure: helium. While commonly associated with birthday balloons, helium is indispensable for cooling superconducting magnets in MRI machines, a crucial component in semiconductor manufacturing, and even in rocket fuel systems. The ongoing conflict has forced Qatar, a major supplier responsible for about a third of the world’s helium, to temporarily halt its liquefied natural gas and helium plants. This has ignited fears of a sudden global shortage.
The implications are particularly severe for Taiwan’s semiconductor sector, a linchpin in global technology supply chains. Carlos Pacheco, a market analyst at Aurora Insights, highlighted the difficulties. “For Taiwan, it’s being felt in helium and bromine imports, which are becoming difficult to source,” he stated. “Helium is used for cooling and cleaning the chips, and bromine is used in the etching process to make the circuitry precise.” This situation poses a significant challenge for South Korea and Taiwan, both heavily reliant on helium for their advanced semiconductor production.
Eric May, a professor at the University of Western Australia and chief executive of the Future Energy Exports Cooperative Research Centre, pointed out that even under normal circumstances, transporting helium through the Strait of Hormuz is risky. “There aren’t any helium pipelines,” Mr May explained. Purified helium must be transported in containers, making maritime routes through the Strait of Hormuz essential. Unlike oil or gas, helium is a non-renewable resource that forms slowly over billions of years and cannot be easily replaced or rapidly produced.
South Korea’s parliament has already raised concerns about potential disruptions to its chip manufacturing capabilities due to the sourcing challenges of helium. Industries ranging from AI data centres and smartphones to the automotive sector are exposed to this risk. Facilities currently in operation face immediate pressure to maintain their supply chains. “The incumbent players — the ones running the systems that power companies like the big tech firms — have to keep the lights on,” said Mr Pacheco. “They’ll dedicate time, energy and money to maintaining operations.”
Meanwhile, projects in the development phase could face significant delays amidst this persistent uncertainty. Mr Pacheco added, “AI data centres — rapidly expanding across Asia — have different hardware and cooling requirements from traditional facilities, meaning supply disruptions could affect them in different ways. How do you navigate through a hurricane when you don’t know how big it is or how long it will last? Everyone is scrambling.”
