{"id":508,"date":"2026-05-26T03:32:37","date_gmt":"2026-05-26T03:32:37","guid":{"rendered":"https:\/\/asianewscast.com\/2026\/05\/26\/commentary-strait-of-hormuz-disruptions-create-a-fossil-premium-for-consumers\/"},"modified":"2026-05-26T03:32:37","modified_gmt":"2026-05-26T03:32:37","slug":"commentary-strait-of-hormuz-disruptions-create-a-fossil-premium-for-consumers","status":"publish","type":"post","link":"https:\/\/www.asianewscast.com\/?p=508","title":{"rendered":"Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers"},"content":{"rendered":"<div class=\"content\">\n<div class=\"layout layout--onecol\">\n<div class=\"layout__region layout__region--content\">\n<section data-title=\"Leaderboard  01 Article\" class=\"block block-ad-entity block-ad-displayleaderboard-01-article clearfix\">\n<div class=\"block-title\">Advertisement<\/div>\n<div id=\"ad-entity-7f6ah2agiQA\" class=\"ad-entity-container not-initialized\" data-ad-entity=\"lb01_mobile\" 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data-ad-entity-type=\"Adobe_Ad_Entity\" data-ad-entity-view=\"mc_adobe_advertisement_provider_default\" data-ad-entity-variant=\"[&quot;tablet-ios&quot;]\" data-ad-entity-targeting=\"{&quot;entitytype&quot;:&quot;node\/article&quot;,&quot;entitylabel&quot;:&quot;Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers&quot;,&quot;entityuuid&quot;:&quot;a27cb06c-3167-40b5-a4d9-2f926eeaa3e6&quot;}\">\n<\/div>\n<\/section><\/div>\n<\/p><\/div>\n<div class=\"layout layout--onecol\">\n<div class=\"layout__region layout__region--content\">\n<section data-title=\"Content Details\" class=\"block block-mc-content-detail block-content-details clearfix article-detail-title-block\">\n<div data-title=\"Content Details\" class=\"content-detail block block-mc-content-detail block-content-details clearfix article-detail-title-block\">\n<p class=\"content-detail__category\">\n<a class=\"link\" href=\"\/commentary\"><br \/>\n      Commentary<br \/>\n  <\/a>\n    <\/p>\n<h1 class=\"h1 h1--page-title\">\n      Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers<br \/>\n  <\/h1>\n<div class=\"content-detail__description\">\n<p>The Iran war has shown how deeply dependent the world is on fossil fuels beyond electricity and transport, says Alvin Ee of the Energy Studies Institute, NUS.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section><\/div>\n<\/p><\/div>\n<div class=\"layout layout--twocol-section layout--twocol-section--75-25\">\n<div class=\"layout__region layout__region--first\">\n<section data-title=\"Hero Emphasis\" class=\"block detail-hero-media block-mc-hero-emphasis block-hero-emphasis clearfix\">\n<figure data-title=\"Hero Emphasis\" class=\"figure block detail-hero-media block-mc-hero-emphasis block-hero-emphasis clearfix\" data-img-id=\"\">\n<p>      <img decoding=\"async\" class=\"image\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--yUye3S5f--\/c_crop,h_899,w_1598,x_0,y_23\/c_fill,g_auto,h_468,w_830\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2021-08:cna,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/04\/08\/thailand-gas-energy-eec-4.jpg?itok=ywxStpJ4\" alt=\"Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers\" title=\"Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers\"><figcaption class=\"figure__caption\">\n<p>An LNG tank is seen from a fishing village in Map Ta Phut in Thailand&#8217;s Rayong province. (Photo: CNA\/Jack Board)<\/p>\n<\/figcaption><\/figure>\n<\/section>\n<section data-title=\"Text to speech\" class=\"block block-layout-builder block-field-blocknodearticlefield-text-to-speech clearfix\">\n<div>\n<div class=\"mc-text-to-speech-wrapper\">\n<div class=\"new-feature-wizard\">\n    <span class=\"new-feature-wizard__text\"><br \/>\n        New: You can now listen to articles.<br \/>\n        <span class=\"new-feature-wizard__close\"><\/p>\n<p>      <img decoding=\"async\" class=\"image\" src=\"https:\/\/www.channelnewsasia.com\/profiles\/custom\/mediacorp\/themes\/mc_core_theme\/images\/close.svg\"><\/p>\n<p>        <\/span><br \/>\n    <\/span>\n<\/div>\n<p class=\"text-to-speech-caption\">\n       This audio is generated by an AI tool.\n    <\/p>\n<\/div>\n<\/div>\n<\/section><\/div>\n<div class=\"layout__region layout__region--second\">\n<section data-title=\"Byline\" class=\"block block-layout-builder block-field-blocknodearticlefield-author clearfix\">\n<div>\n<div>\n<div class=\"author-card author-card--author-info-block\">\n<div class=\"author-card__figure\">\n            <a href=\"\/author\/alvin-ee\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s---cUsZcsa--\/c_fill,g_faces:auto,h_140,w_140\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/05\/21\/d7912065-c74a-4d97-89f7-137701804224_0.jpeg?itok=inCJqhtG\" alt=\"\"><br \/>\n<\/a>\n                  <\/div>\n<div class=\"author-card__content\">\n<div class=\"author-card__body\">\n<div class=\"author-card__author-name\">\n<h6 class=\"h6 h6--author-name\">\n<a class=\"h6__link\" href=\"\/author\/alvin-ee\"><br \/>\n      Alvin Ee<br \/>\n  <\/a><br \/>\n  <\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div><\/div>\n<\/section>\n<section data-title=\"Content share and bookmark\" class=\"block block-mc-content-share-bookmark block-content-share-bookmark clearfix\">\n<div data-title=\"Content share and bookmark\" class=\"mobile_author_card block block-mc-content-share-bookmark block-content-share-bookmark clearfix\">\n<div class=\"mobile_author_card__image-wrapper\">\n<div class=\"mobile_author_card__image mobile_author_card__image--\">\n<a class=\"link\" href=\"\/author\/alvin-ee\"><\/p>\n<p>      <img decoding=\"async\" class=\"image\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--VN26pJeo--\/c_fill,g_auto,h_100,w_100\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/05\/21\/d7912065-c74a-4d97-89f7-137701804224_0.jpeg?itok=33VsuEPv\" alt=\"Alvin Ee\" title=\"Alvin Ee\"><\/p>\n<p>                <\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mobile_author_card__name\">\n<a class=\"link link--author-profile\" href=\"\/author\/alvin-ee\"><br \/>\n      Alvin Ee<br \/>\n  <\/a>\n      <\/div>\n<\/div>\n<div class=\"article-publish article-publish--\">\n        26 May 2026 06:00AM<br \/>\n                        <span>(Updated: 26 May 2026 09:47AM)<\/span>\n            <\/div>\n<div 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data-title=\"Mediacorp Fast Button\" class=\"block block-mc-shorts block-mc-fast-button clearfix\">\n<section class=\"block block- clearfix\">\n<div class=\"mc-fast-button hidden block block- clearfix\">\n<div class=\"mc-fast-button__body\">\n<div class=\"mc-fast-button__text\">\n                    Read a summary of this article on FAST.\n                <\/div>\n<div class=\"mc-fast-button__button-wrapper\">\n<div class=\"fast-button__wrapper hidden\">\n<div class=\"fast-button__tooltip-fast-home-button\">\n<div class=\"fast-tooltip hidden\">\n<div class=\"fast-tooltip__body\">\n<div class=\"fast-tooltip__label\">\n              <span><br \/>\n           Get bite-sized news via a new<br \/>cards interface. Give it a try.<br \/>\n        <\/span>\n    <\/div>\n<div class=\"fast-tooltip__close-button\" role=\"button\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"fast-button__tooltip-fast-back-button\">\n<div class=\"fast-tooltip hidden\">\n<div class=\"fast-tooltip__body\">\n<div class=\"fast-tooltip__label\">\n              <span class=\"fast-tooltip__non-touch\"> Click here to return to FAST <\/span><br \/>\n        <span class=\"fast-tooltip__touch\"> Tap here to return to FAST <\/span>\n    <\/div>\n<div class=\"fast-tooltip__close-button\" role=\"button\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <a title=\"FAST\" href=\"https:\/\/www.channelnewsasia.com\/fast\/6133626\" class=\"fast-button\"><br \/>\n               FAST <\/p>\n<p>    <\/a>\n  <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<\/section>\n<section data-title=\"Content\" class=\"block block-layout-builder block-field-blocknodearticlefield-content clearfix\">\n<div>\n<div class=\"content-wrapper\">\n<div class=\"text\">\n<div class=\"text-long\">\n<p>SINGAPORE: The prolonged disruption to the Strait of Hormuz has sent shockwaves across fuel markets, electricity prices, shipping routes and industrial supply chains.\u00a0<\/p>\n<p>The crisis highlights an uncomfortable reality: The world remains deeply dependent on fossil fuels beyond electricity and transport.\u00a0<\/p>\n<p><a href=\"https:\/\/www.channelnewsasia.com\/sustainability\/nations-kick-world-first-fossil-fuel-exit-talks-6085251\">Recent climate talks in Santa Marta, Colombia<\/a>, reinforced this reality. Organised to bypass the gridlock of United Nations COP summits, more than 50 governments attended the conference seeking to accelerate their transition away from fossil fuels. Discussions also covered energy security and economic resilience.<\/p>\n<p>However, the absence of both the United States and China underscored the limitation of global negotiations without major powers fully engaged.\u00a0<\/p>\n<h2>COMPLEX TASK OF PHASING OUT FOSSIL FUELS<\/h2>\n<div class=\"in-article-games trimmed-content\">\n<div class=\"game-list-header\">CNA Games<\/div>\n<div class=\"game-list\">\n              <a class=\"game-tile\" href=\"https:\/\/www.channelnewsasia.com\/games\/guess-word\"><\/p>\n<div class=\"game-img\">\n            <img decoding=\"async\" title=\"Guess Word\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--9rksCQgs--\/c_fill,g_auto,h_100,w_100\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2025\/12\/03\/game_icon_-_wordrow_-_light_mode.png?itok=y_y6Lkrj\" alt=\"Guess Word\">\n          <\/div>\n<div class=\"game-desc\">\n<div class=\"game-title\">Guess Word<\/div>\n<div class=\"game-abt\">Crack the word, one row at a time<\/div>\n<\/p><\/div>\n<p>        <\/a><br \/>\n              <a class=\"game-tile\" href=\"https:\/\/www.channelnewsasia.com\/games\/buzzword\"><\/p>\n<div class=\"game-img\">\n            <img decoding=\"async\" title=\"Buzzword\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--rNELTwDG--\/c_fill,g_auto,h_100,w_100\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2025\/12\/03\/game_icon_-_buzzword_-_light_mode.png?itok=gjNCaVEc\" alt=\"Buzzword\">\n          <\/div>\n<div class=\"game-desc\">\n<div class=\"game-title\">Buzzword<\/div>\n<div class=\"game-abt\">Create words using the given letters<\/div>\n<\/p><\/div>\n<p>        <\/a><br \/>\n              <a class=\"game-tile\" href=\"https:\/\/www.channelnewsasia.com\/games\/mini-sudoku\"><\/p>\n<div class=\"game-img\">\n            <img decoding=\"async\" title=\"Mini Sudoku\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--cDNZgbXf--\/c_fill,g_auto,h_100,w_100\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2025\/12\/03\/game_icon_-_mini_sudoku_-_light_mode.png?itok=XJMtZA-S\" alt=\"Mini Sudoku\">\n          <\/div>\n<div class=\"game-desc\">\n<div class=\"game-title\">Mini Sudoku<\/div>\n<div class=\"game-abt\">Tiny puzzle, mighty brain teaser<\/div>\n<\/p><\/div>\n<p>        <\/a><br \/>\n              <a class=\"game-tile\" href=\"https:\/\/www.channelnewsasia.com\/games\/mini-crossword\"><\/p>\n<div class=\"game-img\">\n            <img decoding=\"async\" title=\"Mini Crossword\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--vQydxQJa--\/c_fill,g_auto,h_100,w_100\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2025\/12\/03\/game_icon_-_mini_crossword_-_light_mode.png?itok=xnGbWUBS\" alt=\"Mini Crossword\">\n          <\/div>\n<div class=\"game-desc\">\n<div class=\"game-title\">Mini Crossword<\/div>\n<div class=\"game-abt\">Small grid, big challenge<\/div>\n<\/p><\/div>\n<p>        <\/a><br \/>\n              <a class=\"game-tile\" href=\"https:\/\/www.channelnewsasia.com\/games\/word-search\"><\/p>\n<div class=\"game-img\">\n            <img decoding=\"async\" title=\"Word Search\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--lVhq9IJO--\/c_fill,g_auto,h_100,w_100\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2025\/12\/03\/game_icon_-_word_search_-_light_mode.png?itok=J7DBf8e2\" alt=\"Word Search\">\n          <\/div>\n<div class=\"game-desc\">\n<div class=\"game-title\">Word Search<\/div>\n<div class=\"game-abt\">Spot as many words as you can<\/div>\n<\/p><\/div>\n<p>        <\/a>\n          <\/div>\n<div class=\"in-article-games__full-story-wrapper\">\n<div class=\"in-article-games__full-story-button-wrapper\">\n<a class=\"in-article-games__full-story-button\" href=\";\"><br \/>\n      Show More<br \/>\n  <\/a>\n      <\/div>\n<\/p><\/div>\n<div class=\"in-article-games__full-story-button-wrapper\">\n<a class=\"in-article-games__full-story-less-button\" href=\";\"><br \/>\n      Show Less<br \/>\n  <\/a>\n    <\/div>\n<\/p><\/div>\n<p>Oil and gas are not only fuels. They also serve as feedstocks for plastics, petrochemicals, fertilisers, pharmaceuticals, synthetic textiles and industrial chemicals that underpin global supply chains.<\/p>\n<p>Disruptions in fossil fuel supply therefore affect not only transport and power systems. <span>The ripple effects extend into consumer goods and manufacturing supply chains. Japanese snack manufacturer Calbee recently announced\u00a0<\/span><a href=\"https:\/\/www.channelnewsasia.com\/business\/calbee-packaging-black-white-monotone-iran-war-ink-shortage-japan-6115116\"><span>black-and-white packaging for several snack products<\/span><\/a><span> due to shortages of petroleum-derived materials used in printing inks.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"embed\">\n<div class=\"text-long\"><\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"text\">\n<div class=\"text-long\">\n<p>This reveals why phasing out fossil fuels is a far more complex task for governments than simply adopting green policies, say on electric vehicles or solar panels. While low-carbon alternatives such as biofuels and hydrogen are emerging, they face challenges related to cost, infrastructure readiness and scalability.\u00a0<\/p>\n<p>Aviation illustrates this challenge clearly. The aviation sector remains heavily dependent on conventional fossil-based jet fuel, and the Iran conflict has triggered warnings of potential jet fuel shortages and flight cancellations during the European summer travel season.<\/p>\n<p>Sustainable aviation fuel (SAF), which is produced from renewable sources, offers a solution. However, it is constrained by limited production capacity and high costs. More importantly, most commercial aircraft today are certified to operate with only up to a 50 per cent SAF blend.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"referenced-card\">\n<h4 class=\"h4 h4--related-block\">\n<div>Related:<\/div>\n<\/h4>\n<div>\n<div>\n<div class=\"media-object\">\n<div class=\"media-object__figure\">\n  <a class=\"link\" href=\"\/commentary\/energy-crisis-jet-fuel-budget-carrier-southeast-asia-travel-6121311\"><br \/>\n            <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--FUewyk39--\/c_crop,h_449,w_799,x_1,y_1\/c_fill,g_auto,h_98,w_175\/f_auto,q_auto\/v1\/one-cms\/core\/2024-04-22t110941z_1_lynxnpek3l0da_rtroptp_3_capital-a-divestiture-airasia-x.jpg?itok=S3FW-Omg\"><br \/>\n                <\/a>\n    <\/div>\n<div class=\"media-object__content\">\n<div class=\"media-object__body\">\n<div class=\"list-object\">\n<h6 class=\"h6 list-object__heading\">\n<a class=\"h6__link list-object__heading-link\" href=\"\/commentary\/energy-crisis-jet-fuel-budget-carrier-southeast-asia-travel-6121311\"><br \/>\n      <span>Commentary: Are the glory days for Southeast Asian budget carriers over?<\/span><br \/>\n  <\/a><br \/>\n  <\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<div>\n<div class=\"media-object\">\n<div class=\"media-object__figure\">\n  <a class=\"link\" href=\"\/commentary\/air-travel-reduce-carbon-emissions-flights-sustainable-aviation-fuel-2579681\"><br \/>\n            <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--IlErcvwo--\/c_crop,h_574,w_1021,x_1,y_17\/c_fill,g_auto,h_98,w_175\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2022\/03\/07\/000_94z7tu.jpg?itok=p0RQnH_N\"><br \/>\n                <\/a>\n    <\/div>\n<div class=\"media-object__content\">\n<div class=\"media-object__body\">\n<div class=\"list-object\">\n<h6 class=\"h6 list-object__heading\">\n<a class=\"h6__link list-object__heading-link\" href=\"\/commentary\/air-travel-reduce-carbon-emissions-flights-sustainable-aviation-fuel-2579681\"><br \/>\n      <span>Commentary: Is sustainable fuel a chance for &#8216;dirty&#8217; flight industry to decarbonise?<\/span><br \/>\n  <\/a><br \/>\n  <\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"text\">\n<div class=\"text-long\">\n<h2>THE \u201cFOSSIL PREMIUM\u201d<\/h2>\n<p>However, as geopolitical instability disrupts oil and gas markets, dependence on fossil fuels increasingly carries economic risks. Volatile fuel prices, shipping disruptions and broader supply chain uncertainties are effectively creating what could be described as a \u201cfossil premium\u201d.<\/p>\n<p>In Singapore, <a href=\"https:\/\/www.channelnewsasia.com\/singapore\/hawker-food-prices-higher-energy-ingredient-war-iran-middle-east-conflict-6053126\">some hawkers raised food prices<\/a> due to rising ingredient, delivery and energy costs linked to the conflict<span>, while\u00a0<\/span><a href=\"https:\/\/www.channelnewsasia.com\/singapore\/vegetable-farms-iran-war-impact-rising-costs-prices-6015651\"><span>local vegetable farms also warned of increasing operation costs<\/span><\/a><span> from higher fuel and fertiliser prices.<\/span><\/p>\n<p>The fossil premium has led to changes in consumer behaviour. Car dealerships from Australia to Europe have reportedly seen stronger interest in electric vehicles amid concerns over fuel price volatility.<\/p>\n<p>In Singapore, several solar photovoltaic suppliers and service providers have reported increased enquiries for rooftop solar installations as households seek greater control over future electricity costs.\u00a0<\/p>\n<p>The current conflict may accelerate investments in renewable energy, electrification, biofuels and distributed energy systems, not necessarily because countries have become more climate-conscious, but because energy resilience and long-term cost stability are becoming increasingly valuable.\u00a0<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"referenced-card\">\n<h4 class=\"h4 h4--related-block\">\n<div>Related:<\/div>\n<\/h4>\n<div>\n<div>\n<div class=\"media-object\">\n<div class=\"media-object__figure\">\n  <a class=\"link\" href=\"\/commentary\/energy-crisis-singapore-import-natural-gas-solar-nuclear-6043761\"><br \/>\n            <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--6uxIUwZl--\/c_fill,g_auto,h_98,w_175\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/03\/12\/singapore_liquefied_natural_gas.jpg?itok=VV0EryMq\" alt=\"\"><br \/>\n                <\/a>\n    <\/div>\n<div class=\"media-object__content\">\n<div class=\"media-object__body\">\n<div class=\"list-object\">\n<h6 class=\"h6 list-object__heading\">\n<a class=\"h6__link list-object__heading-link\" href=\"\/commentary\/energy-crisis-singapore-import-natural-gas-solar-nuclear-6043761\"><br \/>\n      <span>Commentary: Singapore cannot import its way to energy security<\/span><br \/>\n  <\/a><br \/>\n  <\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<div>\n<div class=\"media-object\">\n<div class=\"media-object__figure\">\n  <a class=\"link\" href=\"\/singapore\/teo-chee-hean-temasek-ecosperity-climate-adaptation-6129376\"><br \/>\n            <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/dam.mediacorp.sg\/image\/upload\/s--qs3oWky_--\/c_fill,g_auto,h_98,w_175\/fl_relative,g_south_east,l_mediacorp:cna:watermark:2021-08:cna,w_0.1\/f_auto,q_auto\/v1\/mediacorp\/cna\/image\/2026\/05\/19\/lzx_4817.jpg?itok=uohaXsTf\" alt=\"\"><br \/>\n                <\/a>\n    <\/div>\n<div class=\"media-object__content\">\n<div class=\"media-object__body\">\n<div class=\"list-object\">\n<h6 class=\"h6 list-object__heading\">\n<a class=\"h6__link list-object__heading-link\" href=\"\/singapore\/teo-chee-hean-temasek-ecosperity-climate-adaptation-6129376\"><br \/>\n      <span>Energy transition a &#8216;race against time&#8217;, not a competition between countries: Teo Chee Hean <\/span><br \/>\n  <\/a><br \/>\n  <\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"text\">\n<div class=\"text-long\">\n<p>This reflects a broader shift in how clean energy is now being perceived. Renewable energy and electrification are no longer viewed solely as climate solutions. Increasingly, they are also seen as hedging mechanisms against geopolitical instability and fossil volatility.<\/p>\n<p>In Southeast Asia, Indonesia and Malaysia have announced plans to accelerate renewable energy deployment and strengthen biofuel blending mandates, allowing for more plant-based fuel to be mixed into conventional fuels.<\/p>\n<p>As the Hormuz crisis drags on, many countries are likely to pursue dual-track strategies of expanding low-carbon technology while maintaining sufficient fossil fuel production to support energy security and industrial stability.\u00a0<\/p>\n<h2>A DIFFICULT BALANCING ACT<\/h2>\n<p>Ultimately, global energy transitions are shaped not only by climate ambitions, but also by affordability, industrial competitiveness and national security concerns. This balancing act is particularly difficult for developing countries.<\/p>\n<p>Energy demand across Southeast Asia continues to rise due to industrialisation, urbanisation and cooling demand. Several countries, such as Vietnam and Indonesia, still rely heavily on fossil fuels to maintain affordable electricity prices.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"podcast\">\n<div>\n<div>\n<article>\n<div class=\"omnystudio-podcast\">\n      <\/div>\n<\/article>\n<\/div><\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"content-wrapper\">\n<div class=\"text\">\n<div class=\"text-long\">\n<p>Singapore also faces this broader regional challenge. Energy security will remain a priority because of the country\u2019s limited potential to generate renewable energy domestically.<\/p>\n<p><span>Rather than prompting Singapore to rethink liquefied natural gas (LNG) imports entirely, the conflict may instead reinforce the importance of supply diversification and procurement flexibility. LNG allows Singapore to source supplies from multiple producers and regions, helping strengthen resilience against geopolitical and supply chain disruptions.<\/span><\/p>\n<p>The current \u201cfossil premium\u201d created by geopolitical instability may eventually ease once markets stabilise. But by then, many countries and industries may already have accelerated investments into cleaner alternatives.\u00a0<\/p>\n<p>The Strait of Hormuz crisis may therefore not mark the end of fossil fuels, but it could become a catalyst that accelerates the parallel systems needed for a more resilient and diversified energy future.\u00a0<\/p>\n<p><em>Alvin Ee is a Research Fellow at the Energy Studies Institute, National University of Singapore<\/em><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/section>\n<section data-title=\"Source\" class=\"block block-layout-builder block-field-blocknodearticlefield-source clearfix\">\n<div class=\"source__block\">\n<div class=\"source source--with-label\">\n    Source: CNA\/zw(el)\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section data-title=\"Categories\" class=\"block block-layout-builder block-field-blocknodearticlefield-category clearfix\">\n<div>\n<div>\n<div class=\"newslettercategory hidden\">\n<div class=\"layout layout--onecol\">\n  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block-field-blocknodearticlefield-topics clearfix block--related-topics\">\n<h4 data-title=\"Related Topics\" class=\"h4 h4--block-sidebar-heading block block-layout-builder block-field-blocknodearticlefield-topics clearfix block--related-topics\">\n      Related Topics<br \/>\n  <\/h4>\n<p><a class=\"link link--trending\" target=\"_blank\" href=\"\/topic\/fossil-fuels\"><br \/>\n      fossil fuels<br \/>\n  <\/a><br \/>\n<a class=\"link link--trending\" target=\"_blank\" href=\"\/topic\/strait-hormuz\"><br \/>\n      Strait of Hormuz<br \/>\n  <\/a><br \/>\n<a class=\"link link--trending\" target=\"_blank\" href=\"\/topic\/southeast-asia\"><br \/>\n      Southeast Asia<br \/>\n  <\/a><br \/>\n<a class=\"link link--trending\" target=\"_blank\" href=\"\/topic\/renewable-energy\"><br \/>\n      renewable energy<br \/>\n  <\/a><br \/>\n<a class=\"link link--trending\" target=\"_blank\" href=\"\/topic\/climate-action\"><br \/>\n      climate action<br \/>\n  <\/a><br \/>\n  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An LNG tank is seen from a fishing village in Map Ta Phut in Thailand&#8217;s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":509,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers - Asia Newscast<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.asianewscast.com\/?p=508\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers - Asia Newscast\" \/>\n<meta property=\"og:description\" content=\"Advertisement Commentary Commentary: Strait of Hormuz disruptions create a \u2018fossil premium\u2019 for consumers The Iran war has shown how deeply dependent the world is on fossil fuels beyond electricity and transport, says Alvin Ee of the Energy Studies Institute, NUS. 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