The government’s decision on Wednesday to partially release state-owned oil reserves in order to ease gas prices marks an extraordinary moment for resource-poor Japan, where oil supply issues have been at the forefront of some of the nation's defining moments over the past century.
Prime Minister Fumio Kishida told reporters Wednesday morning the government has decided to sell part of its stockpile in accordance with legislation that mandates a certain amount of petroleum be kept in reserve. Kishida’s announcement is part of a joint effort by the United States, the United Kingdom, China, India and South Korea to curtail gas prices, which have continued to soar as major nations revive economic activities disrupted by the pandemic.
“We have been working together with the U.S. for the stability of the international oil market,” Kishida said. “I believe that the stability of crude oil prices is a very important issue in achieving an economic recovery from the coronavirus pandemic.”
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