Japan to sell oil from national reserves at pre-Iran war prices

In a move designed to alleviate the burden of soaring energy costs, the Japanese government has announced a significant step: it will begin selling oil from its national reserves at prices reflective of the pre-Iran war era. This decision aims to inject much-needed stability into the market and provide relief to both industries and consumers.

The core of this strategy isn’t just about increasing supply; it’s about controlling prices. The government has clearly stated its expectations from the refining industry. Officials anticipate that refiners who purchase this crude oil at these significantly lower prices will, in turn, pass on these savings to the end-users. The explicit message is that they “won’t then sell their products at higher prices and pocket the profit.”

This proactive measure underscores Japan’s commitment to tackling inflation and protecting its citizens and businesses from the volatility of global oil markets. By leveraging its strategic reserves and setting a clear expectation for price dissemination, Japan hopes to ensure that the benefits of this discounted oil reach everyone.

Source: Original Article