Japan Average Pump Price Drops to 177.7 Yen after Subsidies Resume

Tokyo, March 25 (Jiji Press)–The average retail price of regular gasoline in Japan fell 13.1 yen from a week earlier to 177.7 yen per liter as of Monday, the industry ministry said Wednesday. The drop came after the government resumed subsidies for oil wholesalers last week, in the face of surging crude oil prices amid the deteriorating situation in the Middle East. The decline is the second-largest single-week fall on record, following a 21.7-yen drop just after the provisional gasoline tax rate expired in 2008. Still, the average gasoline price remains elevated. In mid-February, it hovered around 150 yen per liter. To ease oil supply concerns and stabilize prices, the government will release state oil reserves starting Thursday, in addition to tapping into private-sector reserves. Amid Iran’s de facto closure of the Strait of Hormuz, a key oil transport waterway, the average gasoline price hit a record high of 190.8 yen per liter as of March 16, up 29 yen from a week earlier, which matched the largest single-week rise on record. For the week from Thursday, the government will provide subsidies of 48.1 yen per liter, up from the previous week’s 30.2 yen, as it aims to push the average gasoline price down to around 170 yen. END [Copyright The Jiji Press, Ltd.]