Soaring Gasoline Prices Causing Concern in Japan

Tokyo, March 13 (Jiji Press)–Concerns are mounting in Japan over the possible impact on household budgets from soaring gasoline prices, driven by a steep rise in crude oil prices amid the escalating conflict between the U.S.-Israel camp and Iran, ahead of Thursday’s implementation of the government’s price-control measures. Of the country’s 47 prefectures, Wakayama posted the highest growth from a week earlier in average retail prices for regular gasoline as of Monday. On Thursday, a gas station in the city of Wakayama raised its retail price for regular gasoline from 150 yen to 181 yen per liter. The operator said that it was the largest increase since the station was opened. “I’m afraid of further increases and will hesitate to go out by car,” a customer in his 50s sighed. In the city of Yamagata, located in the prefecture of the same name, which recorded the highest average gasoline price in Japan, most gas stations are selling regular gasoline for 180 yen to 190 yen per liter. A local woman in her 70s said this was “a great damage” to daily life. Recent oil price hikes were triggered by the effective blockade of the Strait of Hormuz, where 93 pct of crude oil shipments to Japan pass. Crude oil futures shot up close to 120 dollars per barrel and oil distributors in Japan put up the wholesale price by 26 yen per liter on Thursday, resulting in the higher retail prices. With the view spreading that high prices will persist, people rushed to gas stations. In preparation for the continued blockade, the Japanese government will release private and state oil reserves as early as Monday. “We will do everything to secure alternative sources,” industry minister Ryosei Akazawa told a press conference Friday. He mentioned Central Asia and South America as possible alternative sources for crude oil, with a history of past shipment and spare production capacity. The Japanese government will begin implementing price-control measures on Thursday, providing subsidies to oil wholesalers with the aim of keeping the nationwide average gasoline price at around 170 yen per liter. An industry ministry official said gasoline prices should stabilize within a few weeks, urging people not to be overly concerned and to refuel at their usual pace. END [Copyright The Jiji Press, Ltd.]