Press Conference by Minister Akazawa (Excerpt)

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

9:57‒10:10 a.m.
Tuesday, May 19, 2026
Press Conference Room, METI Main Building

Opening Remarks

None

Question-and-Answer Session

Consideration of financial measures, including drafting of a supplementary budget

Q: Yesterday, Prime Minister Takaichi instructed her cabinet to compile a supplementary budget as part of considering financial measures to ensure that a prolonged situation in the Middle East does not have a negative impact. May I ask how the Ministry of Economy, Trade and Industry (METI) will respond to this? Specifically, what support will METI consider providing to the public from July through September when electricity and gas fees increase? Regarding emergency measures to curb dramatic fluctuations in gasoline prices, some point out that flexible measures should be adopted to ensure support remains sustainable. What are your thoughts on the future direction and the need to reconsider the emergency measures? Also, will budgetary measures be necessary to resolve bottlenecks in the distribution of petrochemical products? Please share METI’s status on its consideration of support measures for electricity, gas, and gasoline expenses, as well as for bottleneck elimination.

A: METI has been taking measures as necessary while closely monitoring the economic impact of the situation in the Middle East to prevent adverse effects on the lives and livelihoods of the public, as well as their economic activities. In addition to these efforts, given the possible rise in electricity rates driven by surging fuel prices amid the situation in the Middle East, I understand that the prime minister instructed the ruling parties’ Chairpersons of the Policy Research Council to urgently prepare a concrete support plan to keep electricity rates below last summer’s level during the peak consumption period between July and September. With regard to emergency measures to mitigate sharp fluctuations in fuel oil prices, the Government of Japan received a recommendation from the ruling parties to adopt flexible measures in consideration of the situation in the Middle East, price trends, and the sustainability of the support measures, and METI intends to take steps in view of this approach. Amid the ongoing uncertainty in the Middle East, METI will proceed with necessary discussions while closely monitoring price trends and their impact on the economy, in accordance with the prime minister’s instructions, as well as in view of the ruling parties’ recommendation. There have been remarks about reconsidering gasoline subsidies, but the emergency measures to curb dramatic fluctuations in fuel oil prices were implemented to lower gasoline prices as quickly as possible to protect the public’s livelihoods and economic activities, bearing in mind the possibility of gasoline prices surging beyond the 200-yen-per-liter level.

I am aware that parties have been making various remarks, but, as I said, the ruling parties have submitted a recommendation for the Government of Japan to take flexible measures in consideration of the situation in the Middle East, price trends, and the sustainability of the support measures. Therefore, METI will proceed with necessary discussions amid the uncertain situation in the Middle East, while closely monitoring price trends and their economic impact, and in view of the recommendation. You also asked about the bottlenecks in distribution. METI has been taking a consistent approach to this issue and expects that Japan as a whole can secure the necessary quantities of crude oil, petroleum products, and naphtha beyond the end of the year. We are, however, aware of supply imbalances and distribution bottlenecks and are making ongoing efforts to carefully address each problem based on information received from various information submission contacts and other sources.

Remarks on gasoline subsidies by Mr. Hagiuda Koichi, Executive Acting Secretary-General, Liberal Democratic Party (LDP) of Japan

Q: Somewhat related to the previous question, Mr. Hagiuda Koichi, LDP’s Executive Acting Secretary-General, stated yesterday that the current gasoline subsidy program, which caps prices at around 170 yen per liter, should be reconsidered. How did you perceive his remark? Please also share your thoughts on whether and how the current program should be reviewed.

A: The emergency measures to curb dramatic fluctuations in fuel oil prices were adopted to lower gasoline prices as quickly as possible and protect the public’s livelihoods and economic activities, given concerns that gasoline prices might surge beyond the 200-yen-per-liter level, as I mentioned earlier. I am aware of Executive Acting Secretary-General Hagiuda’s remarks, but we received a recommendation from the ruling parties for the government to respond flexibly, taking into account the situation in the Middle East, price trends, and the sustainability of support measures. My understanding is that Mr. Hagiuda’s comment aligns with this approach. Amid ongoing uncertainty in the Middle East, METI will proceed with necessary discussions while closely monitoring price trends and their impact on the economy, and in view of the ruling parties’ recommendation.

Notice of a strike at the Ichthys LNG Project in Australia

Q: I would like to ask about liquefied natural gas (LNG) in Australia. An Australian labor union issued a strike notice against INPEX CORPORATION at its Ichthys LNG Project. Given the recent situation in the Middle East, which has reduced LNG procurement from the region, please share your thoughts on the risks of decreased LNG supply from Australia and its impact on Japan’s LNG procurement.

A: I am aware that a labor union of local employees at INPEX’s Ichthys facility issued a strike notice against the company. I will refrain from providing answers based on speculation about an individual company’s response or the possible impact on the LNG market, but I hear that no disruptions to LNG supplies from Australia have been observed. We intend to take all possible measures to ensure a stable supply of LNG through proactive resource diplomacy and the establishment of frameworks for alternative procurement routes overseas, while continuing to closely monitor the impact on LNG supplies from Australia.

Development Bank of Japan (DBJ) lifts investment restrictions in the defense sector

Q: Let me ask you a question related to defense. DBJ had prohibited funds it invests in from investing in businesses whose sales of manufactured weapons exceeded 50% of total sales, but the bank recently changed this policy, presumably in consideration of trends in the defense industry. How do you perceive this move?

A: I’m aware that DBJ has lifted its restrictions on investment in businesses handling weapons or weapons-related products in the defense sector, with the exception of inhumane weapons prohibited by international treaties. We currently observe a negative social climate surrounding defense-related business, which poses a reputational risk to companies engaged in defense. To strengthen Japan’s defense capabilities, we need to change the public sentiment and foster an environment that encourages defense startups to raise funds and enables them to fulfill their potential. From these perspectives, I welcome DBJ’s decision. Defense-related businesses are directly linked to protecting citizens’ lives, and are therefore of high public interest. I also believe it is crucial to ensure that the broader public gains a proper perspective on the defense industry, recognizing its potential to contribute to Japan’s economic growth through a ripple effect on the civilian sector, including by developing new technologies that benefit people’s daily lives. Jointly with the Ministry of Defense, METI will continue to advocate the importance of defense-related businesses among domestic companies and investors and to drive defense-related investments, including dual-use projects.

Wind turbine accidents in Akita Prefecture

Q: I would like to ask about the wind turbine accidents in Akita Prefecture. In addition to the April accident in Oga City, Akita Prefecture, involving a broken blade falling from a wind turbine, another accident occurred in the same city in March, which only came to light locally yesterday. This accident involved the collapse of a small 20-meter-high wind turbine, and its installation provider said it reported the matter immediately to the Government of Japan. However, for more than a month, the national government had not communicated any further information to the Akita Prefectural or Oga City governments, during which time the local authorities could not obtain a full picture of the accidents. Mr. Suzuki Kenta, Governor of Akita Prefecture, said that the lack of notification or communication from the national government to local authorities was a problem. When advancing businesses, it is essential to ensure safety and foster understanding within the local community. I would like to ask your views on how information about accidents should be shared between the national government and local governments.

A: I have received reports on both March and April wind farm accidents in Akita Prefecture from the respective power generators. The March case was likely caused by strong winds, and the April case, by a lightning strike. We are promptly investigating the root causes, discussing measures to prevent recurrence, and will take all possible measures to ensure the safety of wind turbines. With regard to the April case, we have already instructed the installation provider to ensure the safety of surrounding areas, investigate the causes, and prevent recurrence. At the same time, we asked wind turbine installation providers nationwide to review the history of lightning strikes and, when such history cannot be confirmed for a given period, to conduct an emergency inspection promptly. That said, it seems the governor referred to a lack of communication. I myself believe that not only nuclear energy but also renewable energy is, needless to say, contingent on safety and the understanding of the local community. In that sense, it is imperative to maintain close communication with the governor and local residents so that each project can proceed without any concerns. I am not yet familiar with the details of the governor’s remarks, but I certainly intend to listen to what he has to say, as well as the prefectural government’s views, which surely reflect the consensus or views of local residents, and to find out the in-depth facts about the cases.

Bottlenecks (“mezumari”) in the distribution of petroleum products

Q: I cannot fully understand what you mean by mezumari (literal translation is “clogging,” but figuratively a “bottleneck”) in distribution. Mezumari makes you imagine a situation where large objects are clogged in fine mesh, but according to your explanation, products in large volumes are successfully distributed, while those shipped in small volumes are not reaching their destinations, especially users at the very end. This sounds analogous to frostbite experienced by mountain climbers. Could you elaborate on the term to clarify what exactly is “clogging” the “fine mesh,” and what the “fine mesh” refers to?

A: By mezumari, we mean a situation in which we have sufficient total quantity, but specific demands have not been met. This is the definition of the term. If the total volume were insufficient, we would be in a dire situation where consumers could not use oil or petroleum products such as naphtha, and the whole country would have to decide who to prioritize. However, the point is that we have sufficient overall volume. METI has therefore been making efforts to ask consumers experiencing shortages to raise their voices, track each supply chain to identify where supply imbalances exist, and pinpoint the location of mezumari in the distribution channels. No individual or business gets by without using petroleum products. At times, shortages may be caused by imbalances or mezumari in distribution amid the situation in the Middle East, while at other times, the cause may be a plant shutdown, whether planned or unplanned. Whatever the case may be, we are addressing each shortage with great care. The crucial point is whether we have sufficient total quantity. This makes a decisive difference. We use the term mezumari to clarify this point and describe the current situation in which the total volume is sufficient, yet individual users say they cannot obtain what they need.