Tokyo: The Japanese government commenced the release of its state oil reserves on Thursday to stabilize the supply of oil products as Iran enforces a de facto blockade of the Strait of Hormuz due to ongoing tensions with the United States and Israel. This marks Japan's first release of state oil reserves since 2022, a year marked by Russia's military aggression against Ukraine.
According to Philippines News Agency, this strategic release involves approximately 8.5 million kiloliters of oil, which equates to 30 days of domestic consumption, to be distributed in stages from various oil reserve bases across Japan. On the initial day of the release, crude oil was transferred from the Kikuma national petroleum stockpiling base located in Imabari, Ehime Prefecture, to a nearby refinery operated by Taiyo Oil Co. through a pipeline.
State oil reserves will be released from a total of 11 facilities, including five national oil stockpiling bases and six private sector bases. While the Kikuma base has already started the release, eight additional bases are set to commence within the month. The Kamigoto base in Nagasaki Prefecture and the Shibushi base in Kagoshima Prefecture, both in southwestern Japan, are scheduled to begin their releases next Wednesday.
Industry Minister Ryosei Akazawa convened a meeting with Shunichi Kito, head of the Petroleum Association of Japan and chairman of major oil wholesaler Idemitsu Kosan Co., along with other industry officials. During the meeting, Minister Akazawa committed to ensuring a stable oil supply in collaboration with industry stakeholders, taking various pieces of information into account.
Since March 16, the government has already been releasing oil equivalent to 15 days' consumption from private-sector reserves. The current combined release from state and private-sector reserves represents one of the largest in Japan's history. Furthermore, an additional five days' worth of oil reserves managed by oil-producing countries like Saudi Arabia in Japan will be released later this month.
Japan is also experiencing a decline in crude oil imports as over 90% of its supply traditionally comes from the Middle East. With the effective closure of the Strait of Hormuz, the government, along with the private sector, is actively seeking alternative sources. Consideration is being given to importing oil from the United States, Central Asian nations such as Kazakhstan, and South American countries, according to an industry ministry official.
