JAPAN’S crude oil imports last year fell to the lowest level since 1988 as demand weakens amid a declining population and more efficient vehicles.

    The world’s third-biggest economy imported 195.5 million kiloliters of oil, or about 3.37 million barrels a day in 2015, a 2.3 percent drop from the previous year, according to preliminary data from the Ministry of Finance yesterday. That’s the lowest since 1988 when the nation imported 192.2 million kiloliters, data from the ministry show.

    Japan’s oil product demand peaked in fiscal year 1999 and has been in decline as the populace shrinks and as auto manufacturers build more fuel efficient vehicles, forcing refiners to cut capacity and consolidate.

    Lower crude prices, waning inflation expectations and a reversal in the yen’s declines have added pressure on the Bank of Japan to expand its already-record stimulus program even as cheaper commodities have helped narrow Japan’s trade deficit.

    “A drop in crude prices is a negative factor for the Bank of Japan to achieve its 2 percent inflation target,” said Bob Takai, president of Sumitomo Corporation Global Research Co. “For Bank of Japan Governor Kuroda, it is most desirable that crude prices are stabilized. A decline in oil prices is not bad for the whole economy but the speed has been too drastic.”

    Japan bought about 82 percent of its total oil imports from the Middle East last year, 1.2 percentage points less than a year earlier, according to the Ministry of Finance. Meanwhile, Russia increased its share by 0.7 percentage points to 8.8 percent in 2015, according to the data. (SD-Agencies)