Sieam Reap, Cambodia -- Southeast Asian nations pledged on Wednesday to pursue alternative energy to blunt the future impact of $60 oil, but side-stepped any political measures that might provide more immediate relief.

Energy officials from the Association of Southeast Asian Nations (ASEAN) touted biofuels -- partially synthetic gasoline or diesel made from crops such as corn or sugar -- as the best means of supplanting oil demand with a cleaner, domestic source.

"We accorded high priority to promotion of energy efficiency in the transportation and industrial sectors, as this may be one of the most economical and effective ways to mitigate the adverse impact of higher oil prices," they said in a communiqué after the annual meeting.

ASEAN also worked to update a 1986 petroleum security pact, which stipulates that oil-rich members such as Indonesia, Malaysia and Brunei assist importers during times of need.

There was little firm talk of tougher short-term measures, such as scrapping costly state subsidies to relieve state budgets, or resolving regional border disputes that could unlock billions of barrels of oil and gas reserves.

The absence of many ministerial-level officials highlighted the problems facing the region. The minister for ASEAN's top consumer Indonesia was kept at home to deal with a domestic supply crisis borne of the government's struggle to keep up with heavily subsidized domestic fuel costs.

And Thailand's top official stayed in Bangkok to announce the early end to domestic subsidies as ASEAN's biggest oil-importing economy reels from $60 crude.

"We cannot claim to have made spectacular progress in dealing with the impact of high oil prices on our economies," ASEAN Secretary-General Ong Keng Yong, told a business forum ahead of the meeting.

Officials said there was a renewed call on the Organization of Petroleum Exporting Countries (OPEC) to help cool markets, but the cartel's sole Asia-Pacific member offered little hope.

"More OPEC oil is not really going to help," Maizar Rahman, Indonesia's OPEC governor, told Reuters, reiterating that the shortage of consumer fuels such as diesel -- not a lack of crude -- was keeping prices high.

"The problem is in the consuming countries.

BIOFUEL HOPES in 2012

Oil prices that have doubled in two years are crimping economic growth in the region, but have made alternative fuels more economical, foremost among them biofuel.

Thailand is aiming for biodiesel and ethanol-blended gasoline to make up 10% of its motor fuel usage by 2012, providing a boost for its farmers and reducing its oil dependence.

Other big growers such as Malaysia, Indonesia and the Philippines have similar plans.

But many countries have opted not to take the one step that could help reduce oil consumption immediately: scrapping domestic subsidies that artificially spur demand by shielding consumers from the impact of higher costs.

"Some members are now under a lot of pressure to reduce subsidies, but we do not see an immediate solution because citizens are so used to them," Mr. Ong said.

Thailand has been the most ambitious in removing subsidies, while the Philippines liberalized its market a decade ago. But Indonesia and Malaysia, which together account for nearly half ASEAN's demand, sell the cheapest fuel in Asia.

With few top officials present, the meeting made little progress in overcoming the sea border disputes that have hampered investment and exploration in some of the region's most prospective waters.

Indonesian officials said a simmering row with Malaysia was being dealt with by the foreign ministry, while Thai delegates gave little reason to hope for a quick settlement with Cambodia in a dispute over the Gulf of Thailand.

ASEAN, which also groups Laos, Myanmar, Vietnam and Singapore imports a net 1.5 million barrels of oil per day, more than a third its total demand and a sharp reversal from its status as an exporting region a decade ago. -- Reuters