Japan has initiated the release of 30 days’ worth of oil from state reserves to mitigate the impact of the West Asia conflict on its economy. This decision follows the recent withdrawal of 15 days’ worth of oil from private-sector stockpiles. The government plans to sell approximately 8.5 million kiloliters of oil from 11 storage bases across the country.
In addition to tapping into its own reserves, Japan will access joint oil reserves maintained in the country by three Middle Eastern nations, including the United Arab Emirates. By next Tuesday, five days’ worth of oil will be released from these reserves to supply oil wholesalers. Japan heavily depends on the Middle East for over 90% of its crude oil imports, making it susceptible to disruptions like the potential closure of the Strait of Hormuz due to the ongoing conflict.
To address the surge in oil prices and fuel costs, the Japanese government has resumed gasoline subsidies to stabilize consumer expenses. This move has led to a reduction in the average retail price for regular gasoline from a peak of 190.8 yen to 177.7 yen per liter. As of the end of 2025, Japan held oil reserves equivalent to 254 days of domestic demand.
The impact of the West Asia tensions is not limited to Japan, as seen in other countries like the Philippines. President Ferdinand Romualdez Marcos signed a law enabling the temporary suspension or reduction of fuel excise taxes on petroleum in response to global oil price fluctuations. This measure aims to provide flexibility in managing rising fuel costs for consumers and the overall economy, with the law set to be effective for a specified period until the end of 2028.
