Japan Weighs Oil Cost-Sharing Plan Amid Hormuz Strait Crisis

The Japanese government is considering a plan to have private oil companies share the costs of importing crude through routes that bypass the Strait of Hormuz.

This move aims to diversify Japan's energy sources, as more than 90% of its crude imports transit through the strait. The extra costs come from transporting U.S.-origin oil via a route around South Africa's Cape of Good Hope, which takes about 50 days compared to 20 days for Middle East-produced oil.

The government-backed Japan Organization for Metals and Energy Security would collect a levy from oil wholesalers and trading companies. The payment would fund subsidies for businesses that import oil not passing through the Strait of Hormuz.