Tokyo, March 26 (IANS) Japan began releasing 30 days' worth of oil from state reserves on Thursday to cushion the impact of the West Asia conflict on its economy, as concerns over supply mount and oil prices soar, local media reported.
The move came after the country started drawing down 15 days' worth of oil from private-sector stockpiles last Monday, reports Xinhua news agency
The government plans to sell a total of about 8.5 million kiloliters of oil from 11 storage bases across the country, according to Kyodo News.
Japan will also begin to tap joint oil reserves held in the country by three Middle Eastern nations, including the United Arab Emirates, with five days' worth to be released by next Tuesday for supply to oil wholesalers.
Japan relies on the Middle East for more than 90 per cent of its crude oil imports, leaving it highly vulnerable to the effective closure of the Strait of Hormuz following the outbreak of the Middle East conflict in late February. The disruption has driven sharp rises in both crude oil and retail gasoline prices in the country.
In addition to tapping oil reserves, the Japanese government also resumed gasoline subsidies to cap fuel costs for consumers. The measure has brought the average retail price for regular gasoline down to 177.7 yen (about 1.11 US dollars) per litre from a record high of 190.8 yen last week, according to Kyodo News.
As of the end of 2025, Japan held an oil reserve equivalent to 254 days of domestic demand.
The impact of the tensions in West Asia is being seen in several nations.
Meanwhile, in the Philippines, President Ferdinand Romualdez Marcos on Wednesday signed a law allowing the government to temporarily suspend or cut fuel excise taxes on petroleum when global oil prices reach a set threshold.
Republic Act No. 12316 authorises the president, upon the recommendation of the Development Budget Coordination Committee and in coordination with the Secretary of the Department of Energy, to act when the average price of Dubai crude oil reaches or exceeds 80 U.S. dollars per barrel for one month.
Under the law, any suspension or reduction of fuel excise taxes may be implemented for up to three months at a time, but not exceeding a total of one year.
The tax rates will automatically revert to their original levels either one week after the one-month average Dubai crude price falls below 80 US dollars per barrel, or after three months have elapsed, whichever comes first.
The measure is designed to give the government a flexible tool to cushion the impact of rising fuel costs on consumers and the broader economy.
The act will take effect in 15 days, and the authority granted to the president under the measure will remain in effect until December 31, 2028.
--IANS
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