(April 12): Japan will work closely with Asian countries where essential petroleum-based products including medical equipment are produced, Economy Minister Ryosei Akazawa said in a Sunday debate programme on broadcaster NHK.
Many goods are made in Asia and exported to Japan, and so securing the crude oil needed to supply these is critical. Japan has amply oil reserves but is facing supply chain bottlenecks.
Distribution networks have become more complex, making it more difficult for the government to know where bottlenecks may emerge. The authorities are collecting information, using AI tools and other means, to pinpoint constraints and prioritise fixes until the situation stabilises.
Japan must brace for a prolonged period of elevated prices, as the cost of oil is unlikely to return to levels of US$60-US$70 a barrel any time soon. Gasoline subsidies will continue for now to cushion consumers, but Japan has no intention of maintaining them indefinitely.
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