The Japanese government has announced plans to begin an additional release of oil reserves equivalent to approximately 20 days of the country’s consumption starting May 1. This decision has been made in light of increased uncertainty regarding the stability of oil deliveries through the Strait of Hormuz.
This is reported by Finway
Details of the Japanese Government’s Decision
According to information from the Ministry of Economy, Trade and Industry of Japan, the volume of released reserves will amount to 5.8 million kiloliters of oil, valued at 540 billion yen (about 3.4 billion USD). These resources will be supplied from ten national reserve depots. The fuel will be received by the four largest Japanese wholesale companies — Eneos Corp., Idemitsu Kosan Co., Cosmo Energy Holdings Co., and Taiyo Oil Co.
Japan imports over 90% of its oil from Middle Eastern countries, and a significant portion of this import passes through the Strait of Hormuz. Therefore, any threats or disruptions in this strategic waterway directly impact the country’s energy security.
Background and International Context
The latest decision to release reserves follows a previous step taken by the government that began in mid-March. At that time, Japan had already started to release oil from state and other reserves in an amount equivalent to approximately 50 days of consumption. This was aimed at stabilizing energy supply following strikes by the US and Israel against Iran, which caused resource shortages for importing countries.
In March, amid significant reductions in supplies from Gulf countries, similar measures were taken by the governments of South Korea and Japan: both countries decided to use part of their strategic oil reserves to support market stability.
“US President Donald Trump has again ordered the Navy to open fire on boats that are mining the Strait of Hormuz.”
The actions of the American side and the subsequent escalation in the region have become some of the main factors influencing Japan’s decision to release additional oil. Thus, the country is trying to safeguard itself from energy risks and ensure a steady supply of fuel to the domestic market.