Asia Turns to Biofuels as Oil Shocks Test Energy Security

KUALA LUMPUR, 23 May 2026 – Asian economies are accelerating their shift toward biofuels as governments seek to reduce exposure to volatile global oil prices, rising import bills and supply disruptions triggered by geopolitical tensions.

The move reflects a broader energy-security recalibration across the region. Countries including India, Indonesia and Malaysia are increasing the use of domestically produced biofuels such as ethanol and palm oil-based biodiesel to reduce dependence on imported fossil fuels. The push has gained urgency after crude oil prices rose sharply from about US$72 per barrel in late February to around US$100 amid the US-Israel conflict with Iran.