Several countries in Asia have taken measures to mitigate the rise of fuel prices resulting from the conflicts in the Middle East:
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South Korea has doubled its temporary fuel tax cut on gasoline from 7% to 15% and on diesel from 10% to 25% (Yonhap News Agency, 26/03/2026). In addition, the measures, which were due to expire in April 2026, will be extended until the end of May 2026. Legislation allows for fuel tax cuts of up to 37%, leaving a margin for further reductions if the Middle East crisis worsens. The country, which is heavily dependent on energy imports, leaving it particularly vulnerable to external price shocks, first introduced the fuel tax cut in November 2021;
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Vietnam has reduced the environmental protection tax on gasoline (excluding ethanol), diesel, and aviation fuel from VND1,500-2,000/l (USD5-7c/l) to zero from 26 March to 15 April 2026 (VnExpress, 26/03/2026). Furthermore, the country also adjusted the excise tax on all types of gasoline, and cut the value-added tax on gasoline, diesel and aviation fuel from 10% to 0%;
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Finally, India has lowered the central excise duty on gasoline from INR13/l (USD13c/l) to INR3/l (USD3c/l) (News On Air, 27/03/2026). The country also cut the duty on diesel from INR10/l to zero.