Japan faces future of fuel shortages in the short-term

Japan faces increased fuel oil and gasoline shortages, in addition to higher prices, as the country begins its recovery from the earthquake, tsunami and nuclear power plant crisis. Power plants that run on fossil fuel are increasing production as a result of the nuclear power plant crisis in Fukushima. In 2007, the need for additional fuel oil was also great after the earthquake shut down Tepco’s Kashiwazaki-Kariwa nuclear plant. According to the Petroleum Association of Japan, there has been a decline of fuel oil inventories in recent years. The inventory has been holding steady at about 2.3 million kiloliters in March 2011. The country’s oil refining capacity is down by a quarter due to the suspension of operations at five refineries. (March 14, 2011)