China, home to the biggest oil refining sector in the world, announced it was ready to cooperate with Southeast Asia in addressing energy problems stemming from the U.S.-Israeli conflict with Iran and has called on parties involved to cease military operations.
China’s show of willingness to work with the region of more than 700 million people would come as a relief to Southeast Asian oil importers after an order from Beijing came earlier this month that banned Chinese exports of diesel, gasoline and jet fuel.
The ban would worsen shortages and further hike prices for some of China’s strategic partners in Southeast Asia, which have already been struggling due to supply cuts caused by the war in West Asia.
China Could Ease Ban
When questioned about whether Southeast Asian nations had requested help, Lin Jian, a spokesperson of the Chinese Foreign Ministry, speaking at a regular news conference, said, “The situation in the Middle East has disrupted global energy security.”
“The countries involved should immediately cease military operations to prevent regional instability from having a greater impact on global economic development,” said Lin.
“China is willing to strengthen coordination and cooperation with Southeast Asian countries to jointly address energy security issues,” Lin added.
Any easing of the ban could help pacify fuel concerns from countries in the region.
Region Prepares for Spike in Energy Prices
In Thailand, the Ministry of Finance have begun preparations for measures that will reduce excise taxes on fuel, according to the Bangkok Post, and is drafting legislation to allow the country’s Oil Fuel Fund to borrow more capital to stabilise domestic prices.
Small businesses and households have also been urged to reduce reliance on the state electricity grid and instead adapt to solar power solutions, as the spike in global energy prices threatens to increase costs despite the government’s cap on power tariffs, the Bangkok Post reported.
On Tuesday, the Philippine Energy Secretary Sharon Garin met with the Chinese ambassador to the Philippines for discussions regarding cooperation in energy, a departure from the disagreements between the two nations over maritime rights in the South China Sea.
(With inputs from Reuters)
