Takaychi: No need for extra budget for gasoline measures

Japanese Prime Minister Sanae Takaichi has stated that no additional budgetary measures are required to address rising gasoline prices amid escalating tensions in the Middle East, emphasizing reliance on existing reserves and emergency interventions. During a March 9 House of Representatives budget committee session, Takaichi confirmed the government has been evaluating responses since early last week, prioritizing actions to stabilize energy costs without diverting funds from the fiscal 2026 budget.

The government plans to utilize the Fuel Oil Price Stabilization Fund and 860 billion yen ($5.4 billion) in reserve funds from the current fiscal year's budget, which Finance Minister Satsuki Katayama described as "enough" to support countermeasures for "the next one or two months" according to official statements. Additionally, Japan will release 15 days' worth of privately held oil reserves and one month's supply of national reserves by March 16, bypassing coordinated international releases through the International Energy Agency (IEA) to expedite action.

Takaichi emphasized Japan's high dependence on Middle East crude oil—over 90% of imports—amid the Strait of Hormuz's partial closure, which threatens supply disruptions. The government aims to maintain a nationwide gasoline price average of approximately 170 yen per liter, down from the pre-tenure average of 178 yen. While no immediate military involvement is planned for securing oil routes, the government remains prepared to extend support if the crisis persists.

These measures reflect efforts to mitigate economic strain without compromising the fiscal 2026 budget timeline, which Takaichi has urged the Diet to finalize by March's end.