With the U.S. oil price racing towards $48 a barrel, energy conservation is becoming more important for a region that imports two-thirds of its oil needs.

However, the low per capita energy consumption in most Asian countries and the strong economic growth expected for the region in coming years mean that the impact of energy conservation will have limited impact on energy demand.

"People (in Asia) don't use fuel for leisure. They use it out of necessity," said Hassaan Vahidy, lead analyst for energy consultants FACTS Inc in Singapore.

"I don't think it (energy conservation) is going to make any significant dent on the growth of Asian consumption of energy and its reliance on imported energy."

Asia's oil demand is rising as its economy has recovered from the 1997/98 Asian crisis. Oil demand, led by China which overtook Japan last year as the world's second-largest oil consumer, is expected to grow more than 4 percent this year.

Strong oil prices are raising concerns about inflation in some countries such as India, forcing Asia's third-largest oil consumer to slash duties on oil products this week.

MANY ROADS TO SAVE ENERGY

But other countries are moving to rein in consumption. For example, Thailand will order service stations to shut down by midnight, and shopping malls and convenience stores to close earlier. Bangkok has decided to scrap subsidies on gasoline from next week, but the prime minister shot down a proposal to make motorists pay to use the main roads in the capital.

Vietnam is considering allowing distributors to raise retail rates by up to 10 percent if oil prices hit $50 a barrel. It has requested all state agencies to cut fuel usage by 10 percent this year and by up to 20 percent next year.

Yet China's demand for diesel remains strong as it grapples with the worst power crisis since the 1980s, even after wholesale prices along the bustling east coast have risen 4 percent in the past three weeks.

"We're caught in a squeeze. Demand for diesel has risen but there just isn't enough supply at the moment," said an official with Zhenhai Refining & Chemical Co, China's top refiner and a subsidiary of Sinopec Corp.

China has been rationing electricity and restricting the use of air-conditioners. Lights on Shanghai's famed waterfront Bund have been turned off for several weeks over the past two months, while the city government has told some 3,000 factories to switch production to the graveyard shift.

South Korea, the world's fourth-biggest oil importer, is discussing ways to give further financial support to companies that switch to more energy-efficient systems.

For some Asian countries, cutting fuel subsidies or raising prices may be an effective way to discourage consumption. But most governments are unlikely to do so for fear of sparking public protests from the poor, analysts say.

Thailand has promised to keep subsidies on diesel until the end of the year to help farmers.

Some Asian countries are boosting investment in renewable energy. India is considering blending ethanol with petrol and bio-diesel with diesel, while Indonesia has been struggling to promote use of natural gas in taxis.

But the economics of extracting fuel such as oil from coconut or sugar cane remain in doubts.

Educating the public on energy savings is key, analysts say.

Resource-deficient Japan, which has been pioneering energy-saving schemes since the oil shock of the 1970s, has seen a significant rise in public awareness.

"It is the result of the long-term energy-saving efforts, not just some short-term measures as a response to recent high oil levels," said Koichi Sasakai, a researcher at the Institution of Energy Economics, Japan.