Japan Begins Release of Private-Sector Oil Reserves in Response to Situation in Strait of Hormuz

The Yomiuri Shimbun

16:30 JST, March 16, 2026

The government on Monday began releasing oil reserves held by the private sector in response to the effective closure of the Strait of Hormuz, a strategic chokepoint for energy supplies. Imports of Middle Eastern crude oil, which come to Japan via the strait, are expected to decline from around Friday.

The move is aimed at ensuring a stable supply of gasoline and other petroleum products and having a calming effect on their prices. The decision to release private-sector reserves will allow for the provision of about 26.5 million barrels, equivalent to at least 15 days’ worth of domestic consumption.

The Oil Stockpiling Law requires oil wholesale companies and other entities to maintain oil stockpiles equivalent to 70 days’ worth of consumption in normal times. On Monday, the Economy, Trade and Industry Ministry announced in a government gazette that it would reduce the mandatory stockpile requirement to 55 days’ worth.

Since oil wholesale companies hold most of their stockpiles as finished products such as gasoline and kerosene, Japan has positioned the release of their stocks as its initial response.

Starting around the end of the month, the government will also release one month’s worth of national oil reserves, which are mostly in the form of crude oil. These reserves will be sold to private companies. Between the national and private-sector reserves, a record 45 days’ worth of oil will be released.

As of the end of December, Japan had 254 days’ worth of oil stockpiled.

This marks the seventh release of oil reserves, with the last being 12 days’ worth released in the wake of Russia launching its aggression against Ukraine in 2022.

The government announced the release shortly before the decision of the International Energy Agency, whose members include Japan, the United States and Europe, to conduct a coordinated release of 400 million barrels.