The Japanese government has made assurances that there is sufficient lubricant supply and urged the lubricant industry to continue supplying products to all customers, as businesses grapples with a shortage of lubricants due to the Middle East conflict.
During an interview on April 17, the Minister for Economy, Trade and Industry Akazawa Ryosei said that currently, supply is secured through alternative procurement of crude oil and the release of stockpiles. However, some distributors and consumers who were worried about supply upped purchases leading to a 30% surge in the volume of shipments in March compared to the same month of the previous year.
On March 11, the government implemented mitigation measures and released private and national stockpiles, which are now depleted.
“Imports of specialized base oils used in high-performance products from the Middle East have stopped and businesses are responding by adjusting inventories and rushing to procure substitutes,” Ryosei said.
Meanwhile, the ministry will continue to supply distributors and lubricant business based on the volume of the previous year and adjust for the March surge accordingly by reducing supply for those who overbought in March.
The minister asked lubricant manufacturers and distributors to adopt similar practices and to try to coordinate amongst businesses in the lubricant industry to ensure supply to all customers. The Agency for Natural Resources and Energy is also available to work with the industry when there are supply problems.
However, on the same day the minister commented, the Automobile Business and Culture Association of Japan said on their website that “many oil distributors have stopped receiving orders, and some maintenance companies have had their operations affected.”
It added that lubricant manufacturers estimate that Qatar may have accounted for about 20% of Japan’s total base oil imports although imports from South Korea, which accounts for the remaining 80%, continue manufacturers are limiting supply to the same volume as the previous year.
”As of April 16, major distributors have stopped accepting orders for diesel engine oil. The negative scenario is that the prolonged conflict in the Middle East will reduce the supply of base oil from South Korea. Depending on the supply, it may be difficult to procure not only diesel engine oil but also gasoline engine oils.”