Japan will release strategic oil reserves as early as Monday to relieve pressure on gasoline and energy prices, Prime Minister Sanae Takaichi announced Wednesday, citing supply concerns from the ongoing Middle East conflict.
“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.
Tokyo has been engaging with the Group of Seven and International Energy Agency members on a potential coordinated release of oil to counter rising crude prices. However, Takaichi stressed that Japan needed to act promptly to mitigate the impact on its economy.
“Crude oil imports to Japan are expected to decrease significantly starting late this month,” she said, noting that tanker shipments through the Strait of Hormuz have been heavily disrupted.
“Given Japan’s exceptionally high dependence on the Middle East for oil and the severe impact expected, we plan to utilise Japan’s strategic petroleum reserves,” Takaichi added.
The government will continue liaising with the G7 and the IEA to ensure there are no disruptions in petroleum product supply, including gasoline. Takaichi said measures would be taken to keep average gasoline prices around 170 yen ($1.07) per litre, slightly below last year’s average of 178 yen.
