Takaichi Sanae Posts Late at Night! Has Met with G7, Japan to Take Emergency Measures to Ease Oil Crisis

As tensions in Iran escalate, Middle Eastern conflicts are beginning to impact the global energy markets. Japanese Prime Minister Sanae Takaichi posted late at night stating that to prevent a surge in oil prices from affecting people’s livelihoods and the economy, the Japanese government will implement a series of emergency measures, including activating gasoline price subsidies, utilizing oil reserves, and cooperating with the G7 and the International Energy Agency (IEA) to stabilize the energy market.

Crude oil prices face upward pressure; Japan activates gasoline price buffer measures

Sanae Takaichi pointed out that during last year’s extraordinary Diet session, the Japanese government prioritized policies to address “rising prices,” including abolishing temporary tax rates and reducing gasoline and diesel prices through supplementary budgets. However, recent escalations in Iran have caused crude oil prices to rise sharply, and domestic gasoline prices in Japan may also increase significantly.

To prevent oil prices from impacting people’s livelihoods, she has instructed the Minister of Economy, Trade and Industry, Akira Akazawa, to swiftly implement “emergency stabilization measures.”

According to government data, before Takaichi took office, the average retail price of gasoline in Japan was 178 yen per liter. The government aims to keep the nationwide average gasoline price around 170 yen even as crude oil prices rise. In addition to gasoline, fuel prices for diesel, heavy oil, and kerosene will also be subject to price control measures. Related subsidies will draw from existing energy fund reserves, with implementation possibly starting as early as next week.

Tensions in the Strait of Hormuz threaten a significant reduction in Japan’s crude oil imports

Takaichi also warned that ships transporting crude oil through the Strait of Hormuz are currently experiencing “substantially impassable” conditions. Japan estimates that crude oil imports could decrease sharply starting later this month. To prevent disruptions in petroleum supply, the Japanese government will utilize both national and private oil reserves and coordinate with the G7 and IEA to release oil reserves collectively.

Japan has decided not to wait for international coordination; after gaining IEA understanding, it plans to release reserves as early as the 16th of this month. Takaichi stated that the government will prioritize releasing private and national reserves and will provide them promptly to domestic refineries, while also utilizing joint reserves in cooperation with oil-producing countries.

G7 emergency meeting: stabilizing energy markets becomes a global focus

Takaichi revealed that she attended an online G7 leaders’ summit late at night Japan time. Leaders discussed the impact of the escalating Middle East situation on the global economy, finance, and energy markets, as well as the security of maritime routes including the Strait of Hormuz. The G7 also confirmed that coordinated actions will be taken to stabilize global energy supply and demand, and welcomed the IEA’s initiative to coordinate the release of oil reserves.

Takaichi concluded by saying that the Middle East situation remains uncertain. The Japanese government will continue to monitor developments and oil price fluctuations, taking necessary measures to ensure domestic energy supply stability and the safety of citizens’ lives. She emphasized that Japan will also work with the G7, Gulf oil-producing countries, and the international community through diplomatic and economic means to help de-escalate the situation.

Taiwan maintains stability mechanisms to reduce oil price fluctuations

Back in Taiwan, the current “stability mechanism” was introduced during the late term of President Tsai Ing-wen’s first administration and during Premier Lai Ching-te’s tenure. Proposed by the Ministry of Economic Affairs and approved by the Executive Yuan, it officially came into effect in May 2018. The mechanism calculates an “adjusted price,” and when it exceeds 30 NT dollars, the stability mechanism is activated. Under this tiered system, CPC and the government share some of the price increases, helping to slow price hikes and reduce inflation. When prices fall, the same tiered system is used to slow the decline, allowing CPC to gradually recover the amounts previously absorbed.

This article, “Sanae Takaichi posts late at night! Meets G7, Japan will take emergency measures to ease the oil crisis,” was first published on Lian News ABMedia.