Japan faces oil supply risks and shrinking refueling infrastructure

Japan faces dual challenges regarding its fuel infrastructure and energy security. Due to disruptions in crude oil procurement from the Persian Gulf, Japan is currently relying on tankers from the United States and shipments transferred via Malaysia. Current data indicates that stable oil supplies may be at risk, with projections suggesting availability could be constrained through May of next year.

Simultaneously, the nation's domestic refueling infrastructure is shrinking significantly. The number of gas stations in Japan has decreased by approximately 55% from its peak in 1994, falling to 27,009 locations as of March 2025. This decline has created “SS underserved areas” in 381 municipalities, where fuel access is limited, posing risks to logistics and disaster preparedness.

To combat labor shortages and declining profitability, regulatory reforms have been implemented. As of February 2026, new ministerial ordinances allow the use of AI-based monitoring and authorization systems at self-service stations. This replaces the previous requirement for constant human visual surveillance, allowing companies like ENEOS and Cosmo Oil to implement automated systems to maintain essential refueling services.