The Japanese government is pushing to make naphtha stockpiling mandatory, following significant instability in supply and demand caused by navigation concerns in the Strait of Hormuz.

According to local media reports on Thursday, July 9, 2026, the Japanese government is considering a plan that would require oil refiners and the petrochemical industry to maintain a certain level of inventory of petrochemical products derived from naphtha, which is extracted from petroleum.

Japanese Minister of Economy, Trade and Industry Ryosei Akazawa stated during a press conference on July 7, "We will examine the methods for stockpiling and the necessity of government support."

He added that the government is also considering including naphtha as a "specified critical material" under the Economic Security Promotion Act.

In Japan, the supply of naphtha—a raw material used in a wide range of fields including packaging, ink, construction, and agricultural materials—has plummeted since the deterioration of the situation in the Middle East, leading to complaints from various industrial sectors.

The Japanese government is considering stockpiling crude oil, the raw material for naphtha, or finished petrochemical products rather than the highly volatile naphtha itself. It is also planning to consider having the government cover a portion of the facility investment costs for such stockpiling.

Japan previously had a naphtha stockpiling system until the 1990s, but it was abolished as companies facing economic downturns complained about the burden of stockpiling costs and because the material was relatively easy to procure from overseas at the time.

The necessity of such a system has been highlighted once again as the recent Iran crisis has exposed the fragility of energy supply chains.

Meanwhile, Japanese Chief Cabinet Secretary Minoru Kihara, the government spokesperson, said during a regular press conference on Thursday, July 9, 2026, that the government is "watching with grave concern" the situation regarding the renewed military clashes between Iran and the United States, and urged both sides to implement the memorandum of understanding (MOU) on ending hostilities previously signed by the two nations.
 

(Photo: Yonhap News)