Two-Month Supply Secured via Imports and Domestic Refiners

Japan has sufficient naphtha supplies to meet its needs for at least four months, according to a statement from Sanae Takaichi. The current reserves consist of approximately two months of shipments procured from overseas and additional volume held by domestic refiners.

This assessment comes amid broader regional concerns regarding energy security and potential disruptions to oil flows, particularly those linked to the Middle East and Iran.

Regional Energy Security Measures

Japan’s focus on naphtha stability aligns with similar efforts by other major Asian importers to safeguard their energy supplies against volatility in the Middle East. Across the region, governments and refiners are implementing diversified sourcing strategies and strategic reserve mechanisms to mitigate the impact of geopolitical tensions.

India has similarly reported securing crude oil supplies to cover a 60-day period. According to a government statement released March 26, 2026, India has diversified its sourcing by utilizing more than 41 suppliers globally. This strategy is intended to cushion the country against shipment disruptions from the Middle East, where India typically sources more than 40 percent of its crude.

Indian officials noted that increased crude availability from producers in the Western hemisphere and a temporary U.S. Waiver allowing for boosted imports of Russian crude have helped stabilize their supplies. The Indian petroleum ministry also stated that We find no payment hurdles for imports from Iran.

In South Korea, the government has introduced a strategic oil reserve swap (SWAP) program to address import gaps. Announced by Yang Kiwook, Director General for Industrial Resource Security at the Ministry of Trade, Industry and Energy, the program is scheduled for temporary operation throughout April and May 2026.

Under the South Korean system, the government provides oil reserves to domestic refiners in advance. Once refiners secure and receive alternative supplies from overseas, they replenish the government’s reserve depots with the new cargo. This program differs from previous emergency lending schemes by specifying a repayment date in advance.

China has also taken steps to cushion itself from the oil crisis linked to the conflict in Iran. This has included diversifying oil imports and leveraging its teapot refineries to maintain stability.

Supply Chain Pressures

The push for these strategic reserves is driven by strains on supply chains caused by the ongoing U.S.-Israeli conflict involving Iran. These tensions have specifically affected flows through key transit routes, such as the Strait of Hormuz.

To further safeguard domestic needs beyond crude oil, some nations are targeting specific fuel types. India, for example, has directed its refiners to increase the production of liquefied petroleum gas (LPG), which is widely used as cooking fuel and has historically been heavily dependent on Middle Eastern imports.