Japan to release oil reserves to counter supply risks

Japan plans to begin releasing oil reserves as early as March 16 in an effort to contain a potential surge in petrol and other petroleum prices brought about by the conflict in the Middle East, Prime Minister Sanae Takaichi said late on March 11.

It is believed Tokyo will initially draw on reserves held by the private sector - equivalent to around 15 days of consumption – according to Kyodo News. This will then be followed by releasing up to one month’s worth of state-held oil. The decision has been taken by the Japanese government without waiting for a coordinated move by the International Energy Agency and will mark the first time Japan has released government oil reserves independently rather than as part of an internationally coordinated action since the concept of national stockpiling began in 1978.

Japan’s dependence on crude from the Middle East remains significantly higher than that of many other economies, Kyodo adds, continuing that imports are expected to fall sharply later this month or beyond which has prompted the government to act to help prevent disruptions to supplies of petrol and other petroleum products.

Tokyo is also seeking to contain the impact on consumers if retail petrol prices rise sharply with officials having warned that the national average price could exceed JPY200 ($1.26) per litre. The government is believed to be considering the use of a dedicated fund to keep prices closer to about JPY170 per litre.

On March 9, prices were around the JPY161.80 mark.

As of the end of December 2025, Japan held 470mn barrels of oil reserves, equivalent to 254 days of domestic consumption, with 146 days of this total owned by the government while 101 days were held by the private sector. The remainder were jointly stored with oil-producing countries.