Tokyo: The Japanese government commenced the release of its oil reserves on Monday in response to the effective closure of the Strait of Hormuz by Iran, a move triggered by U.S.-Israeli strikes on Iranian territory.
According to Philippines News Agency, this marks Japan's first such operation in four years, with the government planning to release an amount equivalent to 15 days of domestic consumption from private reserves starting Monday. Additionally, plans are underway to release 30 days' worth from state reserves by late March.
The closure of the Strait is expected to cause a sharp decline in the number of oil tankers arriving in Japan by around Friday. The Japanese government aims to use the oil reserve release to mitigate potential disruptions in the supply of oil-related products.
The government announced in its official gazette on Monday a reduction in the mandated oil reserves for refiners and other businesses, lowering the obligation to maintain reserves from 70 days' worth to 55 days' worth. By the end of last year, private-sector reserves amounted to 101 days' worth, stored in tanks at domestic oil refineries, while state reserves held the equivalent of 146 days of domestic consumption.
In total, the expected release of stockpiled oil is projected to amount to about 80 million barrels, equivalent to 45 days' worth of reserves. As part of its strategy to stabilize the domestic oil market, the government also plans to resume subsidies to oil wholesalers starting Thursday, aiming to maintain retail gasoline prices around 170 yen per liter.
Source: Philippines News Agency
