Japan Average Pump Price Hits Nearly 4-Year Low

Tokyo, Dec. 3 (Jiji Press)–The average retail price of regular gasoline in Japan as of Monday hit the lowest level in three years and 11 months, reflecting an increase in government subsidies, industry ministry data showed Wednesday. The average price at the pump fell by 4 yen from a week before to 164.8 yen per liter, down for the fourth consecutive week, the industry ministry said. The government increased its subsidies to oil wholesalers from 15 yen per liter to 20 yen on Thursday last week, ahead of the planned abolition of the provisional gasoline tax surcharge at the end of this year, with the aim of preventing sharp fluctuations in gasoline prices following the termination of the add-on levy. The subsidies are provided as a measure against soaring gasoline prices. The average price dropped in all 47 prefectures of the country. Among them, Kagoshima, southwestern Japan, logged the highest price, at 176 yen, while Saitama, north of Tokyo, had the lowest, at 158.5 yen. An official at the Oil Information Center of the Institute of Energy Economics said that the nationwide average price is expected to continue falling next week as well. END [Copyright The Jiji Press, Ltd.]