Japan Starts Releasing Oil Reserves After IEA Calls For Coordinated Global Supply Boost

Last Updated:March 16, 2026, 16:00 IST

Japan is releasing 26.5 million barrels of private oil reserves to address potential shortages from the Strait of Hormuz disruption, aiming to stabilize fuel prices and supply.

Japan has started releasing part of its private sector’s oil reserves as concerns grow over the effective closure of the Strait of Hormuz, a crucial route for global energy shipments. The Japanese government announced the move on Monday to prevent possible shortages and stabilise fuel prices as supplies from Western Asia face disruption.

Most of Japan’s crude oil imports from West Asia pass through the Strait of Hormuz. The shipments through the route are expected to decline starting around Friday, raising worries about the country’s energy supply, according to a report by The Japan News

To address the situation, Tokyo has decided to use oil reserves held by private companies.

The step will make about 26.5 million barrels of oil available, which is roughly equal to 15 days of Japan’s domestic consumption.

Authorities hope the measure will help maintain a steady supply of petrol and other petroleum products while also easing pressure on prices.

Under Japan’s Oil Stockpiling Law, oil wholesalers and other companies are normally required to keep reserves equivalent to 70 days of domestic consumption.

However, the Economy, Trade and Industry Ministry announced in a government gazette on Monday that the mandatory requirement will be temporarily reduced to 55 days.

This change allows companies to release part of their stored oil into the market.

Private-sector reserves mainly consist of refined fuels such as petrol and kerosene. Because these products can be supplied quickly, the government has chosen them as the first line of response to the supply concerns.

The government is also preparing to release part of its national oil reserves. From around the end of the month, authorities plan to sell roughly one month’s worth of these reserves, which are mostly stored as crude oil, to private companies.

When combined with the private-sector release, Japan will supply the equivalent of 45 days of oil consumption, the largest release the country has ever carried out.

Despite the move, Japan still maintains significant reserves. Government data shows that the country had oil stockpiles covering about 254 days of consumption as of the end of December.

This will be the seventh time Japan has released its oil reserves. The most recent release took place in 2022, when the government provided about 12 days’ worth of oil following Russia’s invasion of Ukraine.

Tokyo announced the latest decision shortly before the International Energy Agency (IEA) — whose members include Japan, the United States and European countries — agreed on a coordinated global release of 400 million barrels of oil to ease pressure on energy markets.

News world Japan Starts Releasing Oil Reserves After IEA Calls For Coordinated Global Supply Boost

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