Oil Supply Issues: Don’t Misjudge When to Call for Energy Conservation

Editorial

16:17 JST, April 17, 2026

One month has passed since the government began releasing oil reserves in response to the crisis in Iran, but there are still serious concerns over supply.

The government needs to take immediate measures to prevent chaos. At the same time, it should consider at what stage it would have to call for energy conservation in the future.

Regarding national oil reserves, the government will release an additional amount equivalent to about 20 days’ worth, starting in early May. This will be the second phase of releases following the ones that began on March 16. The combined total of oil released will be about 70 days’ worth, or about 30% of the public and private reserves held at the end of last year, which were equivalent to 254 days’ worth.

Even though the Japanese economy has gradually recovered, uncertainty has been growing in the wake of the crisis in Iran. It is understandable that the government aims to bolster the economy by alleviating supply constraints for the time being.

More than 90% of Japan’s crude oil imports pass through the Strait of Hormuz in the Middle East. Following the blockade of the strait, the government has been working to diversify its procurement sources.

Thanks to such efforts, imports from the United States are expected to quadruple year-on-year in May, and the government said there is a prospect of securing crude oil supplies through the beginning of next year. These factors have likely prompted the government to conclude that it can release additional reserves.

However, the outlook for the crisis in Iran remains unpredictable. To prevent disruption to people’s daily lives, the government must start preparing now for the possibility that the situation could deteriorate even further.

Already, concerning issues are arising in various sectors.

There are worries that plastics, synthetic fibers and various other products made from petroleum may run short. Chemical manufacturers continue to cut production due to difficulties in securing raw materials. Rising prices for packaging materials and food containers could put a strain on household budgets.

Efforts must be made quickly to resolve bottlenecks in supply chains, as well as to prioritize the supply of petroleum products to sectors that support people’s lives and livelihoods, such as health care and agriculture.

Keeping in mind that the unstable situation in the Strait of Hormuz may persist, it is crucial for the government to develop long-term contingency plans. It is hoped that the government will consider how to gradually strengthen measures to encourage the public to conserve resources.

In other Asian countries that have limited oil reserves, governments are urging people to take such measures as using public transportation and working from home.

If Japan were to abruptly shift toward measures to curb consumption, it would have a significant negative impact. It is important for the government to carefully analyze prospects for oil supply and devise ways to publicize energy-saving measures early on to ensure public understanding.

The government launched a subsidy program in March to lower gasoline prices. However, this not only places a heavy burden on fiscal conditions but will also make it difficult to curb consumption. If energy conservation becomes crucial for the nation, this program should be scaled back.

(From The Yomiuri Shimbun, April 17, 2026)