TOKYO - As the impact of the effective closure of the Strait of Hormuz spreads, the government announced it will begin releasing national oil reserves from 11 bases across the country starting March 26th, in a move aimed at minimizing disruption to economic activity.
Concerns are already emerging at the retail level, where petroleum-derived products are essential to everyday goods. At a supermarket in Yokohama, shoppers crowded the store during a monthly sale, but underlying unease was evident among staff.
Kubota Koji of Super Celcio Wadamachi said the situation in Iran shows little sign of resolving quickly, raising concerns over prolonged instability. Petroleum products are deeply embedded in daily commerce, from plastic trays used for meat to packaging for snacks, many of which rely on naphtha derived from heavy oil.
While immediate supply disruptions have not yet materialized at the store, Kubota pointed to the risk of rising costs, particularly for staple items such as rice. Rice priced at 3,219 yen per 5 kilograms on March 24th could face further increases if transportation costs and gasoline prices rise.
Kubota noted that although no direct impact is currently visible, higher fuel prices could eventually force suppliers to pass on increased procurement costs.
Industry groups have also voiced concern. Kudo Koshiro, chairman of the Japan Petrochemical Industry Association, said there has been no historical precedent for a near-total closure of the Strait of Hormuz, describing the current situation as extremely serious.
Tsutsui Yoshinobu, chairman of Keidanren, emphasized the importance of naphtha to Japan’s industrial base, noting that supply instability could reasonably lead manufacturers to raise prices.
In response, Prime Minister Takaichi announced on March 24th that the government would begin releasing national oil reserves from March 26th, following earlier moves to tap private-sector stockpiles.
The reserves are stored at large-scale facilities across Japan, including one of the country’s largest bases in Tomakomai, Hokkaido, where massive storage tanks dominate the landscape. Each tank stands roughly 11 stories tall and measures about 250 meters in circumference, large enough to accommodate a jumbo jet.
The Tomakomai East base, one of the largest in the country, houses 57 tanks across a site equivalent to about 58 Tokyo Domes. Oil is transported via pipelines stretching 6.4 kilometers on land and 3 kilometers offshore to port facilities, where it is loaded onto tankers.
Takuma Yukinori, director of the JOGMEC Tomakomai East base, said the facility is constantly maintained to ensure readiness, adding that reserves can be released promptly upon government instruction.
The government plans to release approximately 8.5 million kiloliters of oil—equivalent to about one month of domestic demand—from 11 locations nationwide, including facilities in Imabari, Ehime Prefecture.
Following the release, Japan’s remaining reserves are expected to fall to less than 200 days’ supply, raising questions about whether alternative procurement routes and other measures can be secured in time to stabilize supply.
Source: TBS
