Press Conference by Minister Akazawa (Excerpt)

*Note: This is a provisional translation for reference purposes only.

11:27-11:51 a.m.
Tuesday, March 24, 2026
Press Conference Room, METI Main Building

Opening Remarks

The bill to partially amend the Electricity Business Act

Today, the Cabinet approved the bill to partially amend the Electricity Business Act. Despite the changing international energy situation, domestic electricity demand is expected to increase. Under the circumstances, in order to ensure a stable power supply, it is important to promote the development of large-scale power infrastructure and improve the safety of solar cell power generation facilities, including mega-solar power plants. For this reason, under this bill, measures will be taken to allow the Organization for Cross-regional Coordination of Transmission Operators to provide loans for large-scale transmission lines and power sources using fiscal investments and loans, and to require solar cell power generation facilities to undergo safety verification by third-party organizations. The administrative staff will provide the details later.

Release of oil stocks

Based on the Prime Minister's instructions on Wednesday, March 11, regarding oil stocks, in addition to the release of 15 days' worth of privately held reserves that began last Monday, March 16, we will begin releasing approximately one month's worth of national reserves starting this Thursday, March 26. In addition, regarding the joint stocks by oil-producing countries, this week, Japanese oil wholesalers will sign sales contracts with companies in oil-producing countries for a total of approximately five days' worth of crude oil, and the release is scheduled to begin within March. Furthermore, we are also working to expand procurement through alternative routes that do not involve the Strait of Hormuz, such as shipments from the port of Yanbu on the Red Sea coast of Saudi Arabia and the port of Fujairah in the UAE, as well as increasing procurement from the United States. The first tanker to depart from outside the Strait of Hormuz after the incident is expected to arrive in Japan as early as Saturday, March 28. In addition, subsidies to curb price hikes in fuels including gasoline began last Thursday, March 19. While price reductions are already being seen at gas stations, the average retail prices are expected to fall to around 170 yen on average across Japan over the next two weeks. Through these efforts, we will continue to closely monitor the situation and take all possible measures to ensure a stable energy supply in Japan. The administrative staff will provide details later.

Question-and-Answer Session

Release of oil stocks

Q: I would like to ask a question about the second topic in the opening remarks. Under the IEA's coordinated release of oil stocks, Japan has been allocated 79.8 million barrels. As you mentioned at the beginning, in addition to privately held reserves, national reserves are set to be released starting on March 26. Could you explain the significance of releasing national reserves alongside private ones? In addition, the IEA has also made recommendations to each country regarding energy conservation measures. Is the Government of Japan considering any calls or measures to reduce oil consumption?

A: First, regarding our oil reserves, I believe I previously explained this matter to ensure we share the same understanding. To give you a picture of private reserves, what we call private reserves are essentially rolling stocks. About half of stock on hand is in the form of refined petroleum products, and the other half is stored as crude oil. We refer to both of these together as private reserves. On the other hand, a very large proportion of national reserves are held as unrefined crude oil in tanks. Since crude oil cannot be used immediately by consumers if released, the standard pattern is to start with the release of private reserves, about half of which are already kept in the form of refined products. Once the system for the national reserves is ready, we finalize contracts and logistics for the national reserves, regarding how much and where to release them and thus, national reserves follow the private release. You asked about the significance of releasing national reserves, but simply put, as both private and national reserves are the same oil, they are both of the same value in terms of keeping the lives of the people and economic activities running smoothly. However, for these reasons, private reserves are released first, followed by national reserves. Furthermore, regarding the approximately 80 million barrels, this will be a coordinated release in cooperation with the IEA. Out of the IEA’s total 400 million barrels released, Japan has been allocated approximately 80 million barrels. The combined release from Japan’s private and national reserves at this time will total roughly 80 million barrels, which directly corresponds to the portion assigned to Japan in the IEA's coordinated effort. As I mentioned earlier, we will begin releasing approximately one month's worth of national reserves starting from March 26 this week. I am, of course, aware of the IEA report. It presents examples of measures that each country can take, and I understand that the progress of energy conservation efforts varies from country to country. I do not agree that the current situation is having any immediate impact on oil supply and demand in Japan. While we will continue to closely monitor the situation, we will not rule out any possibilities and will do our utmost to ensure a stable energy supply for Japan. To provide some further context, while the total volume of crude oil within Japan is sufficient to meet overall demand, there are imbalances or bottlenecks in the system. As a result, we are seeing cases where prices remain high at certain individual gas stations. Regarding these issues, as I have already explained, we are asking the public to provide any information they may have on hoarding or withholding practices. We will analyze the information we receive, and if it is determined that some form of intervention or guidance by METI is necessary, we are committed to taking appropriate action.

U.S. tariff measures

Q: I would like to ask about the U.S. tariff measures. At the recent Japan-U.S. summit, the two leaders confirmed the steady implementation of the Japan-U.S. tariff agreement, but I understand that there were no detailed discussions regarding the application of Section 301 of the Trade Act of 1974, which the U.S. is currently investigating. Minister Akazawa mentioned in your meeting with U.S. Secretary of Commerce Lutnick that Japan should be excluded from the 15% tariff increase under Section 122. Could you please tell us about the status of discussions with the U.S. side regarding Section 301 and Section 122?

A: First, regarding tariffs, I believe I informed you all that I had made four requests to Secretary of Commerce Lutnick during my last visit to the United States, or perhaps the visit before the last one. When I visited the U.S. from March 5 to 8, we first reaffirmed, separately from those four points, that both Japan and the United States will continue implementing last year's agreement. I reaffirmed with Secretary of Commerce Lutnick that our agreement remains in effect and that we will proceed as planned. We both committed to upholding our respective obligations; the Secretary asked that Japan remain steadfast in its commitment, and I, in turn, requested that the U.S. do the same. In addition, I presented four requests. First, regarding tariffs under Section 122 of the Trade Act of 1974, Japan will not be treated less favorably than last year’s agreement between Japan and the United States. The second point concerns the potential tariff hike under Section 122 of the Trade Act of 1974, which the U.S. has been suggesting. While Secretary of Treasury Bessent indicated some weeks ago, and more recently as of this week, that tariffs could be raised from 10% to 15%, I confirmed that Japan will not be subject to these increases. Furthermore, regarding measures under Section 301 of the Trade Act of 1974, which the U.S. side has indicated it will consider in the future, I requested that Japan not be treated less favorably than was decided in last year’s agreement between Japan and the United States. The fourth point is that the United States will not ask Japan to take any additional measures beyond the agreement reached between Japan and the United States last year. As the situation regarding these four points remains unchanged, naturally, Secretary of Commerce Lutnick agreed to accept them. This means that as the Japan-U.S. agreement remains in effect, for countries where a deal has been reached, we will proceed according to that deal. That is just how it is. Based on that premise, what I (Minister Akazawa) requested has been acknowledged and is currently on the table, but we are still awaiting a formal response. To reiterate, although Secretary of Treasury Bessent had mentioned raising tariffs from 10% to 15%, to my knowledge, that measure has not yet been enacted against any country.