Japan Releases Oil Reserves to Mitigate Impact of Middle East Conflict

Tokyo (ANTARA) -

Japan has started releasing oil from state reserves on Thursday to reduce the impact of the Middle East conflict on its economy, according to local media reports.

The policy follows growing concerns over supply and surging oil prices. The release of oil supply equivalent to 30 days of domestic needs comes after Japan withdrew oil reserves equivalent to 15 days of needs from private sector oil reserves on Monday (16/3).

According to Kyodo News, the government plans to sell a total of around 8.5 million kilolitres of oil from 11 storage bases across the country.

Japan will also begin utilising joint oil reserves stored in the country by three Middle Eastern nations, including the United Arab Emirates, with reserves equivalent to five days of needs to be released on Tuesday (31/3) for distribution to oil wholesalers.

Japan relies on the Middle East for more than 90 per cent of its crude oil imports, making it highly vulnerable to the effective closure of the Strait of Hormuz following the outbreak of the Middle East conflict at the end of February 2026. That disruption has triggered a sharp surge in crude oil prices as well as retail petrol prices in the country.

In addition to utilising oil reserves, the Japanese government is reinstating petrol subsidies to limit fuel costs for consumers. That measure has lowered the average retail price of regular petrol to 177.7 yen (one yen = Rp105) per litre from a record high of 190.8 yen last week, according to Kyodo News.

As of the end of 2025, Japan had oil reserves equivalent to 254 days of domestic needs.