Japan’s supply of naphtha-derived chemical products is enough to last beyond the end of this year, prime minister Sanae Takaichi stated.
Japanese refiners are enduring to produce domestically refined naphtha, whilst naphtha imports from nations outside the Middle East — which includes the US, Algeria and Peru — will treble in May as compared with ranges before the rise of geopolitical tension within the Middle East, Takaichi stated on 30 April.
Naphtha imports from such nations were 900,000 kilolitres (190,000 b/d) in April and will exceed 1.35mn kl in May, as per the trade and industry ministry Meti. Japan has also secured stocks of intermediate chemical products, inclusive of polyethylene and polypropylene, amounting to approximately 1.8 months’ well worth of use.
These procurement efforts and stock utilisation imply Japan can maintain its supply of naphtha-derived chemical products beyond the end of the year, Takaichi stated, up from the previous estimate of over six months made in early April.
Japan has secured around 1.4mn b/d of crude oil for May, accounting for around 60pc of the nation’s necessities primarily based on average 2025 imports of 2.36mn b/d, Takaichi stated. The nation secured more than 500,000 b/d in April, around 20pc of its requirement, as per to Meti.
Japan has been drawing on its stockpiles to manage its remaining requirements. It started introducing a second batch of oil from its national reserves on 1 May, Meti stated these days. The ministry previously said on 30 April that the begin of this release might be not on time by 1 to 2 May.
Takaichi also emphasizes again that Japan has sufficient oil supplies to last beyond the end of this year, considering account its oil reserves and substitute purchases.
Tokyo has been offering fuel subsidies to reduce the impact of increasing oil prices caused by supply disruptions via the strait of Hormuz, as it target to cap retail gasoline prices at around ¥170/l ($1.08/l).
Japan’s nationwide average gasoline price has fallen to ¥170/l, which is half the extent in European nations and similar to prices in oil-producer the US, Takaichi stressed. Japan’s subsidized retail gasoline prices averaged ¥169.7/l as of 27 April, as per Meti.
