As Russia says it will supply diesel to international markets, Japan is using subsidies to keep diesel prices at around ¥160 per liter and securing stable supplies by sourcing crude oil from outside the Middle East. While depletion of the funding is an issue, there are no plans for an additional release, and the government has indicated that it will respond flexibly.
Russia has reportedly said it will supply diesel to international markets, while Japan is using subsidies to keep diesel prices at around ¥160 per liter and stabilize them amid soaring market prices.
Alternative sourcing of crude oil from outside the Middle East is progressing, and the government believes stable supplies of petroleum products such as diesel and gasoline will be possible for the time being.
The Group of Seven (G7) countries have decided to release a total of 100 million barrels of diesel and crude oil from their reserves, and France, the G7 presidency, has announced a policy of prioritizing diesel. Japan has explained that it has no plans for a new release and indicated that no additional release is necessary.
The funding for subsidies to curb increases in diesel and gasoline prices could run out in October. With the outlook for the situation in the Middle East uncertain, the government says it will consider its options flexibly, including ending the subsidies themselves.