Even crude exporters such as Indonesia and Vietnam are suffering under the growing burden of heavily subsidized local fuel prices, as global oil costs doubled in two years.

And while cheap fuel has helped economies extend their recovery from the region's 1997/98 meltdown, they are keeping global oil markets tight by shielding strong domestic demand growth from the negative impact of higher costs.

``Subsidies that have minimized the price pass-through are actually aggravating oil market conditions by not reducing consumption,'' said Cyn-Young Park, economist with the Asian Development Bank.

Most of the 10 members of the Association of Southeast Asian Nations have raised fixed retail rates at least once this year, but they have generally lagged the 50 percent surge in crude prices from a year ago, when officials last gathered. And while they will probably discuss a host of long-term plans to diversify away from oil, minimizing future price spikes, they are unlikely to risk a public backlash by raising fuel prices again - the most immediate way to curb short-term demand.

``This is a big and sensitive issue,'' said Weerawat Chantanakome, executive director of the ASEAN Center for Energy. ``It's a political issue that each country deals with differently.''

Asia imports more than two-thirds of its oil needs of 24 million barrels per day, so the US$10 rise in average US crude prices this year over 2004 cuts deep.The ADB estimates that a rise of that magnitude shaves roughly 0.8 percentage points off Asian economic growth, excluding Japan, although it still expects 6.0 to 6.5 percent expansion for this year.

Most members of ASEAN - including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam - would appear less at risk, as it produces nearly two-thirds of its four million bpd of demand. But unlike Japan and South Korea, which have weathered higher prices thanks to the continued US economic expansion, the governments of Southeast Asia's more fragile economies have borne the brunt of the rise.

``On the fiscal side, it's an unnecessary strain,'' said Standard Chartered economist Joseph Tan. ``It's money that could be used for expenditure.''

It is ironically the region's only member of the Organization of the Petroleum Exporting Countries - Indonesia - that is hardest hit, paying out US$650 million a month to subsidize the cheapest fuel in Asia, even after a 30 percent rise in March.

``People must be aware that as the price of oil continues to rise ... this will depress the economy, both macro and micro,'' said Mines and Energy Minister Purnomo Yusgiantoro last month. Yet, Indonesia is unlikely to risk public backlash by raising prices again this year, Adam Le Mesurier, Southeast Asia economist for Goldman Sachs, said.

Thailand, ASEAN's second-largest oil consumer, has moved more aggressively than most to wind down subsidies that cost Bangkok US$2.2 billion since January 2004.

Bangkok ended gasoline benefits last year and is now phasing out diesel subsidies, while also considering curbs on consumption including earlier closing hours for petrol stations and electricity price increases.