Japan Plans to Grant Special Permission for Foreign Oil Tankers to Release National Oil Reserves

(1) The Japanese government is considering allowing foreign-flagged oil tankers to participate in the transportation of national oil reserves in order to cope with the record-breaking release of reserves triggered by the worsening situation in Iran. Due to the unprecedented scale of this release, Japanese-flagged tankers alone cannot handle all transportation tasks from reserve bases to refineries. (2) Japan generally restricts foreign vessels from participating in domestic crude oil transportation, aiming to ensure stable domestic maritime capacity. However, the Ministry of Land, Infrastructure, Transport and Tourism may approve foreign oil tankers as a special exception, and relevant coordination work is underway. A spokesperson from the ministry stated: "First, it is necessary to confirm whether Japanese-flagged oil tankers can cope, but issuing permits to foreign oil tankers is also under discussion." (3) The fundamental purpose of this move is to ensure that oil products enter market circulation smoothly and to prevent supply delays caused by transportation bottlenecks, which could further increase upward pressure on oil prices. Against the backdrop of dramatic fluctuations in the global energy market due to Middle East conflicts, Japan is attempting to stabilize the domestic market by releasing reserves, but shortcomings in the transportation sector are becoming a new constraint.