In response to the blockade of the Strait of Hormuz by Iran, which has led to a scramble for oil supplies worldwide, the Japanese government is projecting that they will be able to secure up to 60% of last year’s supply levels through alternative routes and diversified sources, according to a report by NHK on the 4th.
The report states that the Japanese government believes they can increase oil procurement from 20% of last year’s level in April to 60% in May through alternative sourcing. The identified alternative shipping routes for oil from the Middle East include the Fujairah Port in the eastern United Arab Emirates and the Yanbu Port in western Saudi Arabia. Japan anticipates that about half of last year’s import volume can be procured through these routes. Additionally, they plan to secure four times the volume from Texas in the United States compared to last year, along with further procurement from Azerbaijan in Central Asia.
To address any supply shortfalls, Japan intends to release its oil reserves. They are also considering releasing approximately 20 days’ worth of national reserves next month. Japan has already released 30 days out of its 146-day national reserves and 15 days out of its 101-day private reserves to the market since last month.
The Japanese government is confident that with these measures, they can secure the needed supply through early next year. Prime Minister Sanae Takaichi announced on X (formerly Twitter) on the 4th that the necessary oil is secured, emphasizing efforts to alleviate energy concerns.
Prime Minister Takaichi stated they are pursuing oil procurement through the alternative routes to the Strait of Hormuz, involving countries like the U.S., and regions like Latin America and Central Asia, which have supply and production capacity, as well as Singapore and Canada. The Ministry of Economy, Trade and Industry is actively negotiating with these countries.
She noted that on the 28th of last month, a tanker reached Japan without passing through the Strait of Hormuz for the first time since the blockade and that more tankers are expected soon. Japan reportedly has around eight months’ worth of oil reserves and is diligently continuing alternative sourcing, ensuring the nation’s needs are met.
However, there was no specific mention of the starting country for the tanker from the Middle East, although countries such as Oman, UAE, and Saudi Arabia were mentioned.
Furthermore, Prime Minister Takaichi revealed that the Japanese government is directly linking businesses experiencing difficulty due to oil shortages with refining industries. She explained that for critical facilities like medical and public transportation unable to secure fuel from conventional suppliers, the government is arranging for direct sales through refiners and asking major refiners to supply ‘the same amount as the previous year’s same month’ to their regular outlets.
She also highlighted examples such as securing heavy oil for water treatment plant pumps in Tochigi Prefecture and linking a tofu manufacturing business facing operational suspension directly with a refinery.
However, Japan is also feeling the impact of rising oil prices, as major Japanese airlines plan to double the fuel surcharge on international tickets issued after June.