In response to rising gasoline prices resulting from supply disruptions due to the Iran war, Japan's government has declared a state of emergency regarding fuel costs. Japanese Prime Minister Sanae Takaichi has allocated 300 billion yen (approximately 2.8 trillion won) to stabilize gasoline prices, stating that the government will release strategic oil reserves as soon as the 16th of this month. Takaichi instructed Minister of Economy and Industry Ryosei Akazawa to expedite measures aimed at mitigating the effects of soaring crude oil prices due to geopolitical tensions in the Middle East. The goal is to keep the average retail price of gasoline nationwide at around 170 yen (1580 won) per liter, along with similar measures for diesel and other fuels.

The Japanese government is employing various policy measures to curb inflation and prevent excessive increases in fuel prices, including subsidies for gasoline and the release of oil reserves. Under this program, the government will subsidize the losses incurred by gasoline retailers to ensure that prices do not exceed 170 yen per liter. The subsidies, aimed at oil refining companies rather than gas stations, will involve an emergency allocation of 280 billion yen (approximately 2.6 trillion won) from the Fuel Price Relief Fund. Additionally, similar subsidy measures will be applied to other fuels widely used in industries and daily life, such as diesel, kerosene, and heavy oil.

In a proactive move separate from the International Energy Agency (IEA) agreement, the Japanese government has decided to release oil reserves independently. Prime Minister Takaichi emphasized that Japan is prepared to take rapid action to tackle the challenges posed by the current international oil crisis, demonstrating a commitment to maintaining stability in fuel prices for its citizens and the economy. Preparations have already been made by the Ministry of Economy for the potential release of oil from 10 strategic oil storage facilities across Japan, signifying the urgency of the situation as they adapt to the tumultuous energy landscape.