Japan to Release State Oil Reserves Thurs.

Tokyo, March 24 (Jiji Press)--The Japanese government said Tuesday that it will start releasing national oil reserves equivalent to 30 days of domestic consumption, or about 8.5 million kiloliters, in stages from Thursday.

The government also decided to additionally allocate 800.7 billion yen from its fiscal 2025 budget reserves to fund gasoline subsidies and other aid programs.

Through the moves, the government aims to ensure a stable supply of oil products and curb gasoline prices to prepare for a possible prolonged blockade of the Strait of Hormuz, a major transportation route for Middle East crude oil, amid lingering tensions in the region following the conflict between U.S.-Israeli forces and Iran.

Over 90 pct of Japan's crude oil imports comes from the Middle East. The de facto blockade has prevented tankers from passing through the strait, meaning that Japan's crude imports will likely begin to fall drastically soon.

Against the background, the government will release its oil stockpile for the first time since 2022, just after Russia started its full-scale military aggression against Ukraine in late February that year.

[Copyright The Jiji Press, Ltd.]