Prime Minister Fumio Kishida announced this week that Japan would, for the first time, release part of the government’s oil reserves to ease pressure on steadily rising oil prices.
While the move is being done in coordination with other nations, Japan is uniquely vulnerable to this problem. Unfortunately, the release is a veritable drop in the barrel when compared to demand for this vital commodity.
Energy price increases are to be expected as the global economy recovers from COVID-19. While efforts to ease that bottleneck are to be appreciated, they should be done in moderation, to avoid enduring market distortions and the promotion of greenhouse gas producing fuel consumption.