On the 16th, the Japanese government began releasing the largest-ever oil reserves amid a strong confrontation between Iran and the United States. It is the first time in about four years since 2022, right after Russia invaded Ukraine.
According to the Mainichi Shimbun, the government will first release 15 days’ worth of private reserve oil, followed by a month’s worth of national reserve oil. The total amount of emissions combined is expected to reach 80 million barrels, the largest ever. This is equivalent to about 20% of the total domestic reserve oil.
The release of private oil reserves was announced through the official gazette on the same day. Japan’s oil reserve law mandates the government and the private sector to stockpile oil, and as of the end of 2025, a total of 254 days have been secured.
Japan depends on Saudi Arabia for 94% of its crude oil imports. Concerns over stable energy supply have increased as the Strait of Hormuz has been effectively blocked due to recent fighting between the United States, Israel, and Iran.
The oil tanker, which passed through the Strait of Hormuz before the war, is scheduled to arrive in Japan around the 20th of this month, but crude oil supply is expected to decrease significantly after that.
The blockade of the Strait of Hormuz is sending international crude prices soaring, and members of the International Energy Agency (IEA) have decided to jointly release 400 million barrels of oil reserves, the largest ever. This is more than double the 182 million barrels released during the 2022 invasion of Ukraine.
In addition to the release of oil reserves, the Japanese government has announced a plan to curb the national average retail price of gasoline to around 170 yen per liter.
The Ministry of Economy, Trade and Industry will provide subsidies for parts exceeding 170 yen from shipments on the 19th, and the same measures will be applied to diesel, heavy oil, and kerosene. Prime Minister Takaichi Sanae told reporters on the 11th, “We will continue to flexibly review support measures to support people’s lives.”
SAM KIM
US ASIA JOURNAL
