News Investigators/ Japanese Prime Minister Sanae Takaichi said on Wednesday that Japan would release the national oil reserves as early as Monday to deal with a possible surge in gasoline prices.
This is amid escalating tensions in the Middle East, local media reported.
Speaking to reporters at the prime minister’s office, Takaichi said the situation in the Middle East has effectively prevented crude oil tankers from passing through the Strait of Hormuz.
This has raised concerns that Japan’s crude imports could drop significantly later this month, public broadcaster NHK reported.
“Japan relies heavily on Middle Eastern oil and is therefore particularly vulnerable,” Takaichi said, adding that to ensure the oil supply is not disrupted, the government will utilise its oil reserves.”
Under the plan, Japan will release 15 days’ worth of reserves held by the private sector and then 30 days’ worth of government-held oil.
This will happen without waiting for an international decision coordinated by the International Energy Agency, the report said.
Meanwhile, the average retail gasoline price in Japan rose to 161.8 yen (about 1.02 dollars) per liter as of Monday.
It is rising for the fourth straight week and surpassing 160 yen for the first time in three months, the Ministry of Economy, Trade and Industry said Wednesday.
The Oil Information Center, which collated the data, estimated that gasoline price could climb a further 20-yen next week, as refineries had been raising wholesale prices in response to surging oil prices.
Xinhua/NAN