Effective May 20, the Ministry of Economy, Trade and Industry (METI) made a decision, to end the reduction of oil product stockpiling required for private sectors by a total of 25 days. The reduction was being implemented in order to ensure stable supplies of gasoline and light oil in the Tohoku region (affected areas) and the Kanto region.

1. On March 14 and 21, METI eased the oil product stockpiling requirements for private sectors in order to secure an effective supply of oil throughout Japan by reducing stocks of oil products held by oil companies and by promoting smooth coordination between companies and local communities.

   * Private sector stockpiling requirements (in the number of days of supply)
   Effective from March 14: Reduction from 70 days to 67 days (3 days [approx. 1.26 million kl])
   Effective from March 21: Reduction from 67 days to 45 days (22 days [approx. 9.24 million kl])

2. Subsequently, METI was concerned that the private sector stockpiling requirements could hinder oil product supply, and decided on April 21 to extend the easing of the requirements for one month (until May 20), in order to ensure sufficient supplies of oil products to the affected areas.

3. In the event that fuel supply to the affected areas and other areas improves, the demand for gasoline will increase in summer as usual, and it is assumed that the demand for light oil etc. will rise due to reconstruction efforts after the earthquake. Thus, METI decided to restore the private sector stockpiling requirements to 70 days effective from May 21 so that oil companies can hold (stockpile) oil products in preparation for stable supply of energy this summer.

4. Since it is likely that unexpected situations could result from aftershocks or the like, METI will consider to reduce the private sector stockpiling requirements again promptly and flexibly if necessary.

May 20, 2011

Petroleum Refining and Reserve Division, Natural Resources and Fuel Department, Agency for Natural Resources and Energy