On March 13, the Japanese government announced an official plan to begin releasing oil reserves on March 16, aimed at preventing supply disruptions of petroleum products within the country. Initially, the plan involves reducing the mandatory stockpile level for oil wholesalers from 70 days to 55 days, which will free up 15 days’ worth of oil for consumption. Japan's oil storage includes national reserves owned by the government and private reserves, with national reserves amounting to 146 days and private reserves at about 101 days as of the end of December last year.

To implement the release, the government intends to first tap into the private reserves, which are already stored at refineries. Oil wholesalers will evaluate how much of the available stock they will actually utilize. Following this initial release, the government plans to sell an additional month’s worth of oil from national reserves, totaling approximately 45 days (or about 80 million barrels) to the oil refiners and related companies. This strategic move is seen as a significant action to manage potential disruptions in oil supply amidst increasing pressures on global oil markets.

The release of these reserves is expected to play a crucial role in stabilizing domestic oil supply amidst fluctuating global oil prices and will likely have implications for pricing and availability of oil products in Japan. As the situation unfolds, the government's careful management of oil reserves will be a focal point for both economic analysts and consumers hoping to avert fuel shortages.