Japan regular gasoline price rises 3.3 yen w/w to 161.8 yen/ltr

Japan’s regular gasoline price rose 3.3 yen week-over-week to an average of 161.8 yen per liter ($1.03) as elevated crude oil prices, driven by the effective closure of the Strait of Hormuz, begin to impact domestic markets. A gas station in Sapporo, Hokkaido, increased its price by three yen to 161 yen per liter, reflecting higher supplier costs. While some stations in Tokyo reported quieter activity without panic buying, prices in the capital remained in the 150-yen range, with one station recording 176 yen per liter—the highest among surveyed locations.

The price surge has raised concerns across industries. Trucking companies, such as a Fukui-based operator with 330 vehicles, face heightened transportation costs, as fuel constitutes 10% of expenses. The firm's president warned of potential deficits amid rising costs. Meanwhile, ethylene production—critical for plastics and chemicals—is under threat, with Idemitsu Kosan signaling possible domestic suspensions and Mitsubishi Chemical Corporation already reducing output.

The Japanese government has implemented measures to mitigate impacts, including abolishing a provisional gasoline tax and providing refiner subsidies. Additionally, Japan's strategic oil reserves, sufficient for 254 days of consumption, are seen as a buffer against volatility. However, analysts caution that prolonged instability could strain households and industries further, with public transport fare hikes and broader inflationary pressures looming. As of March 9, the Agency for Natural Resources and Energy reported the highest gasoline price in three months, underscoring the urgency of the situation.