Industry Minister Ryosei Akazawa confirmed that the new bills aim to mitigate the economic shock caused by surging freight and insurance premiums. Since the onset of regional conflicts, Japan—which historically sourced over 90% of its crude from the Middle East—has been forced to diversify procurement. The policy targets the high price of transporting energy from non-traditional suppliers in Canada, Azerbaijan, and Africa to compensate for the disruption of primary transit routes.
Beyond direct shipping subsidies, the legislation supports the development of alternative infrastructure, including pipelines, and secures insurance mechanisms for tankers navigating volatile waters. This shift represents a broader pivot for the G7 economy, which previously relied on a massive release of strategic reserves to bridge supply gaps. By offloading these logistical expenses, Tokyo hopes to insulate its domestic industry from the volatility of global oil transit costs.


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