Prime Minister Sanae Takaichi said the Japanese government will respond flexibly to energy supply challenges without eliminating any possibilities.
The stance comes as prolonged instability in the Middle East threatens crude oil supplies and depletes domestic reserves. Because Japan relies heavily on imported energy, any significant disruption in the region could trigger economic volatility or fuel shortages.
Speaking during a Senate Budget Committee meeting on June 7, 2026, Takaichi addressed concerns regarding the nation's energy security. She said that while she is monitoring the situation in the Middle East, the government is not currently at a stage to ask citizens for further energy conservation.
"I do not believe we are at a stage to ask for further stepped-up conservation at this moment, but we will continue to closely monitor the situation in the Middle East and respond flexibly without excluding any possibilities," Takaichi said [1].
The administration's flexibility is being tested by a decline in the funds used to stabilize energy supplies. The total amount for the energy stability fund is 1.16 trillion yen [2], but the balance as of late April was approximately 980 billion yen [2].
Opposition lawmakers have questioned whether the government is acting too slowly to curb demand. Rep. Yuko Mori of the Constitutional Democratic Party of Japan said that a policy shift is necessary before reserves are completely exhausted.
"I do not think we are at a stage where we can say gasoline consumption is fine and people should just keep using it," Mori said [1]. "It is too late once it is gone—the strategic petroleum reserves. Shouldn't we change our policy soon?"
Despite these warnings, the government continues to manage retail costs through subsidies. The national average retail price for gasoline, after the application of subsidies, is approximately 170 yen [2].
“"I do not believe we are at a stage to ask for further stepped-up conservation at this moment."”
The Japanese government is attempting to balance economic stability with national security. By avoiding a formal request for energy conservation, Takaichi is preventing public panic and avoiding a potential dip in consumer spending. However, the depletion of the energy stability fund suggests that the government's ability to subsidize fuel costs may be finite if Middle East tensions persist.
