Japan will begin releasing crude oil from its strategic reserves as early as next Monday to curb potential spikes in gasoline and petroleum prices caused by Middle East conflicts and disruptions to Persian Gulf oil shipments, Prime Minister Sanae Takaichi said Wednesday.
The intervention will mark the first time the nation has tapped its government oil reserves without waiting for a coordinated response from the International Energy Agency (IEA) since stockpiling began in 1978.
The release will cover 15 days’ worth of reserves held by private-sector entities, followed by one month’s supply from government stockpiles.
“We will flexibly review the support measures to ensure continuous relief for the public even if the situation is prolonged,” Takaichi told reporters in Tokyo.
Japan’s decision reflects its acute exposure to energy flows through the Strait of Hormuz, which has been effectively closed to commercial traffic following US and Israeli military strikes on Iran late last month.
More than 90% of Japan’s crude imports originate from Persian Gulf producers, a dependency Takaichi characterized as “prominently high” relative to other industrialized economies.
The prime minister warned that shipments are expected to drop dramatically by late March, creating the potential for severe shortages of gasoline and other refined products.
Retail gasoline prices have already begun climbing. Industry ministry data show the national average approached 162 yen ($1.02) per liter as of Monday, up from a mid-January low of approximately 155 yen.
Takaichi cited projections that prices could breach 200 yen ($1.26) per liter and pledged to deploy government funds to cap costs at roughly 170 yen, providing a buffer equivalent to approximately 15% below the anticipated peak.
At the end of December, Japan held 470 million barrels of petroleum reserves, sufficient to cover 254 days of domestic consumption.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
