Japan Average Pump Price Falls to 167.40 Yen

Tokyo, April 8 (Jiji Press)–The average retail price of regular gasoline in Japan as of Monday fell 2.80 yen from a week earlier to 167.40 yen per liter, down for the third straight week, industry ministry data showed Wednesday. The pump price dropped below the government’s target of 170 yen thanks to state subsidies, despite high crude oil prices reflecting tensions over Iran. The average price declined in all prefectures excluding Kyoto and Ishikawa, which saw increases. Nagasaki logged the highest average, at 178.00 yen, while Aichi marked the lowest, at 159.50 yen. Also on Wednesday, the ministry said it has strengthened its gasoline price monitoring survey conducted for gas stations across the country, in order to make sure that the effect of the subsidies is thoroughly reflected in retail prices. The frequency of the survey was increased from once to twice a month, with ministry officials visiting gas stations where retail prices are high to ask reasons why their prices do not fall and to explain the purpose of the subsidy program. Although the United States and Iran have agreed on a two-week ceasefire, the ministry plans to keep the subsidy scheme in place and continue measures to procure crude oil. “We will keep a close watch with a sense of tension” although the situation is expected to calm down to a certain extent, a ministry official said. Due to the de facto blockade of the Strait of Hormuz by Iran, the average pump price rose to a record high of 190.80 yen as of March 16. The government commenced the subsidy program for oil wholesalers starting with March 19 deliveries. END [Copyright The Jiji Press, Ltd.]