Japan will release strategic oil reserves as early as Monday, March 16, to ease pressure on gasoline and other energy prices, Prime Minister Sanae Takaichi announced Wednesday. The move comes amid supply disruptions caused by the ongoing Middle East conflict.
Takaichi said the government would act without waiting for a coordinated international decision with the International Energy Agency (IEA), aiming to stabilise supply and demand in the global energy market.
“Without waiting for a formal decision on coordinated international stock releases with the IEA, Japan has decided to take the lead in easing supply and demand in the international energy market by releasing strategic reserves as early as the 16th of this month,” Takaichi told reporters.
Japan has been in discussions with the Group of Seven (G7) nations and the IEA regarding a potential joint release of oil reserves to offset rising crude prices. However, Takaichi emphasized that Tokyo needed to act promptly to minimise the impact on its economy.
Crude oil imports to Japan are expected to decline significantly later this month, as many tankers are unable to pass through the Strait of Hormuz. Given Japan’s heavy reliance on Middle East oil, the government plans to use its strategic petroleum reserves to maintain supply stability.
Takaichi also reassured the public that Japan will coordinate with the G7 and IEA to prevent disruptions to petroleum products, including gasoline. Measures will be taken to keep the average gasoline price around 170 yen ($1.07) per litre, slightly below last year’s average of 178 yen.
The move underscores Japan’s proactive response to the global energy crisis, highlighting the country’s reliance on strategic reserves to mitigate the economic effects of international conflicts.
AFP