TOKYO, Japan: Japan will begin drawing down its oil reserves as early as next Monday to deal with a possible sharp rise in gasoline and other petroleum product prices amid the Middle East conflict, said Prime Minister Sanae Takaichi, as reported by Kyodo News Agency.
Takaichi told reporters on Wednesday that Japan will release 15 days’ worth of reserves held by the private sector, followed by one month’s worth of government-held oil, without waiting for a coordinated decision by the International Energy Agency.
It will be the first time Japan has released its oil reserves independently, rather than as part of an internationally coordinated effort, since oil stockpiling began in 1978.
Japan’s dependency on the Middle East for crude oil is “significantly high” compared with other countries, and imports are expected to “drop significantly later this month or beyond”, necessitating measures to prevent disruptions to the supply of gasoline and other petroleum products, Takaichi said.
Citing the possibility that the average price of domestic retail gasoline could surpass 200 yen (approx. RM4.91) per litre, Takaichi also said she aims to keep the price at around 170 yen (approx. RM4.34) by utilising a government fund.
The price of gasoline fell to as low as 154.70 yen (approx. RM3.95) in mid-January but rose to 161.80 yen (RM4.13) per litre as of Monday, according to industry ministry data. – BERNAMA-KYODO
