ASEAN Agrees Joint Oil Stockpiling: How the Emergency Ticket System Works

What has ASEAN agreed?

The Association of Southeast Asian Nations has agreed to set up a joint crude oil stockpiling scheme in response to the supply disruption caused by the war in Iran, OilPrice.com reported, citing Reuters ^[1]. It works as a ticket system: a member pays an advance fee for the right to buy a set volume of oil or fuel from storage run by another member's energy company ^[1]. The first storage sites are in Indonesia and Thailand, and the Philippines is the first user, having asked to buy gasoline and diesel from those sites in a supply emergency ^[1]. The initiative came from Indonesia, with strong support from Japan ^[1].

The scheme builds on the ASEAN Framework Agreement on Petroleum Security (APSA), signed in October 2025 ^[2]. Under APSA, members aim to supply the equivalent of 10% of a distressed member's normal requirements on negotiated terms; a "critical shortage" is a shortfall of at least 10% lasting at least 30 consecutive days ^[2]. Six of the 11 members had ratified the pact by late October, and the goal was full ratification by the November summit ^[2].

Why is Southeast Asia doing this now?

Asia was the region hit hardest by the loss of Middle Eastern supply, OilPrice.com notes ^[1]. About 60% of Southeast Asia's crude imports come from the Middle East, and most ASEAN economies hold only 20 to 50 days of demand, mainly as commercial stocks ^[4]. "You have to secure the molecule," said Razib Dawood, executive director of the ASEAN Centre for Energy, in October ^[2].

The Philippines pushed the idea in September. Trade Secretary Cristina Roque said five ASEAN countries had signalled willingness to take part, naming only Malaysia, and that the scheme could go ahead without all members ^[3]. The UAE said it was willing to supply oil to countries that provide storage ^[3].

Will it work this time?

The region has tried before. ASEAN signed its first petroleum security agreement in 1986 and a new one in 2009, and an ASEAN+3 stockpiling roadmap approved in 2010 never produced an operational plan ^[4]. Elbinsar Purba of the ISEAS – Yusof Ishak Institute lists the obstacles: high costs, different levels of import dependence and emergency planning, concerns about governance and free-riding, and fading urgency once prices calm ^[4]. Cost favours sharing: holding national stocks costs an estimated USD 7.0–8.6 per barrel a year, a ticket system about USD 5.9 and joint stockpiling with exporting countries about USD 3.7–3.8 ^[4].

What to watch

• Ratification. APSA takes effect 90 days after ratification is deposited with the ASEAN secretary-general ^[2].
• Volumes. No stock volumes or days of cover have been published for the new scheme ^[1].
• More users. Whether other importers follow the Philippines in buying tickets ^[1,3].

Alupetra supplies crude oil and refined products to importers in Asia and follows the region's energy security policy closely.