Dependent on imported oil, gasoline prices in Japan continue to rise

Due to the obstruction of shipping through the Strait of Hormuz, the price of gasoline in Japan has soared recently, as Japan heavily relies on oil imports from the Middle East.

A reporter from Xinhua News Agency saw at a gas station in Tokyo on Wednesday (March 11th) that the retail price of gasoline had risen from over 150 yen per liter a week ago to over 190 yen per liter.

The Kyodo News Agency reported on the 11th, citing information from the Japan Petroleum Information Center, that domestic oil wholesalers in Japan plan to raise the wholesale price of gasoline by approximately 25 yen per liter starting from the 12th. Each gas station can then decide the extent of the price increase based on this. This will be the largest increase since comparable data was available in 1990.

The survey results released by the Ministry of Economy, Trade and Industry of Japan on the 11th showed that the average retail price of domestic standard gasoline in Japan on the 9th was 161.80 yen per liter, rising for four consecutive weeks. Japanese media and experts predict that the retail price of gasoline to be announced next week will exceed 180 yen per liter.

The Japanese government said on the 11th that it plans to release oil reserves sufficient to meet domestic demand for 45 days. The release is expected to start as early as on the 16th. The government also said that it will resume providing price subsidies to oil wholesalers on the 19th, in order to keep the average retail price of gasoline at around 170 yen per liter.