ASEAN Urged to Consider Shared Petroleum Stockpile to Shield Region from Supply Shocks and Price Spikes

Southeast Asia should explore creating a shared emergency stockpile of petroleum to cushion the region against supply disruptions and spikes in fuel prices, according to ASEAN Secretary-General Kao Kim Hourn.

Speaking in Tokyo, Kao said member states of the Association of Southeast Asian Nations need stronger regional tools to manage energy-security risks, particularly when global markets tighten and price volatility quickly filters through to domestic economies. A coordinated reserve, he suggested, could help governments respond more effectively to sudden shortages by making additional crude oil or refined products available when commercial supplies are constrained.

The proposal comes as ASEAN economies—many of which rely heavily on imported energy—face the dual challenge of ensuring adequate fuel for transport and industry while keeping inflation in check. When oil prices surge, the effects are felt across household budgets and business costs, and governments can be pressured to expand subsidies or other support measures.

Kao’s comments also touched on broader efforts to strengthen the region’s energy infrastructure and resilience. He said ASEAN is open to greater participation from the private sector in initiatives aimed at improving regional power connectivity, including the long-discussed ASEAN power grid plan. That project seeks to link national electricity systems more closely so countries can trade power across borders, potentially improving reliability and enabling more efficient use of generation capacity.

Taken together, the ideas reflect a push to treat energy security as a regional issue rather than a strictly national one. A collective petroleum reserve would require agreement on how much fuel to hold, where to store it, and under what conditions it could be released—decisions that can be complex given differing national policies and levels of dependency on imports. Even so, Kao’s call suggests ASEAN leaders are weighing more structured mechanisms to cope with external shocks.

Why it matters

Fuel supply interruptions and price jumps can quickly ripple through Southeast Asia’s economies, affecting consumers, manufacturers, and government budgets. A regional petroleum reserve could give ASEAN members an additional tool to stabilize markets during crises, while power-grid cooperation could strengthen reliability over the longer term. Watch for whether ASEAN governments begin formal discussions on shared stockpiling rules and whether private investment accelerates cross-border energy infrastructure.