Japan cabinet approves bills to ease costs of alternative oil import routes

Japan’s cabinet approved three energy security bills on 13 October 2026 to help importers obtain oil and other fuels through routes that bypass the Strait of Hormuz. The government plans to submit the bills to the current extraordinary Diet session; the proposed support has not yet taken effect.

How the bills would support alternative fuel routes

One bill would create grants to offset higher transport costs for crude and fuel bought through alternative routes. Reuters reported that contributions from importers, including refiners, traders and petrochemical manufacturers, would fund the programme.

A second bill would allow the government to cover part of insurance payouts for vessels carrying petroleum products and liquefied natural gas if geopolitical tensions prevent foreign reinsurers from providing cover. Amendments to the law governing JOGMEC would let the state-backed agency invest in alternative supply infrastructure, including pipelines.

The Middle East supplied 94.0% of Japan’s crude-oil import volume in 2025, according to an analysis of customs data by the Japan External Trade Organization. The bills still require Diet consideration, and the cited reports do not establish grant eligibility or how much support importers could receive.