Japan's Cabinet Backs Three Energy Security Bills to Offset Hormuz-Bypassing Oil Transport Costs
Japan's cabinet approved three bills on October 13 to strengthen energy supply security, including measures to offset the higher costs of importing crude oil through routes that bypass the Strait of Hormuz, Industry Minister Ryosei Akazawa told a press conference, according to Reuters. The government plans to submit the bills to parliament during the current extraordinary Diet session.
The procurement diversification bill would create a grant programme to compensate importers for higher transportation costs when sourcing crude oil and fuels via alternative routes that avoid chokepoints such as Hormuz, funded by contributions from a broad range of importers including refiners, traders and petrochemical manufacturers. A second bill would let the government cover part of insurance payouts for oil tankers and LNG vessels if foreign reinsurers cannot provide coverage amid heightened geopolitical tensions.
Amendments to the law governing JOGMEC, the state-backed energy agency, would allow it to invest in infrastructure needed to secure alternative supply routes, including pipelines. The scale of dependence explains the urgency: Japan sourced 94 percent of its crude oil imports from the Middle East in 2025, with 93 percent of those shipments passing through the Strait of Hormuz.
Japan unveiled a comprehensive plan in August to strengthen energy supply resilience, with legislative steps expected by year-end; cabinet approval moves that timetable forward. If passed by the Diet, the bills would add an institutional buffer against extreme fuel and power price swings.
Source: GSM · USA (original Chinese edition)
Photo: 海上原油油轮实景，摄影：Thomas Tim，CC0，来源：Wikimedia Commons（File:DSC 0288 BERGE HELENE (28938960327).jpg）
