Japan Average Pump Price Falls to 170.20 Yen as Subsidies Resume

Tokyo, April 1 (Jiji Press)–The average retail price of regular gasoline in Japan fell by 7.50 yen from a week earlier to 170.20 yen per liter as of Monday, the industry ministry said Wednesday. After hitting a record high of 190.80 yen on March 16 amid escalating tensions in the Middle East, the average pump price marked a second consecutive weekly drop, supported by the government’s reinstated subsidies aimed at easing the impact of rising crude oil costs. The gasoline price is now close to the government’s goal of about 170 yen per liter. Prices had surged following the U.S.-Israeli attacks on Iran and the effective blockade of the Strait of Hormuz, a critical oil transport waterway. The government began providing subsidies to oil wholesalers starting with shipments on March 19, saying that the support would be reflected in retail prices within one to two weeks. “The original purpose (of the subsidies) is being achieved, with people’s daily lives and economic activities being maintained,” a ministry official said. The average price fell across all 47 prefectures of the country. Okinawa posted the highest price, at 181.20 yen, a sharp drop of 45.90 yen from the previous week, while Saitama logged the lowest, at 162.50 yen. Subsidies for the week from Thursday will be 49.80 yen per liter, the largest ever. The government had increased the fund used for subsidies to about 1.15 trillion yen as of the end of March by utilizing reserve funds. The Oil Information Center of the Institute of Energy Economics of Japan predicted that prices will continue moving in a narrow range around 170 yen. The latest findings were released ahead of schedule on Tuesday by Prime Minister Sanae Takaichi. END [Copyright The Jiji Press, Ltd.]