Gasoline Prices in Japan Hit a 9-Month High - Rising to 176.20 Yen per Liter

According to the data released by the Japanese Ministry of Economy, Trade and Industry on July 10th, the nationwide average retail price of regular gasoline as of July 8th was 176.20 yen per liter, up 60 sen from the previous week's survey. This marks a three-week consecutive increase and the highest level since October 2023, about 9 months ago. It is analyzed that the government subsidy provided to oil sales companies has had the effect of suppressing gasoline prices by 27 yen. By prefecture, gasoline prices rose in 37 prefectures, fell in 7 prefectures, and remained the same in 3 prefectures compared to the previous week. Diesel fuel rose 60 sen from the previous week to 155.80 yen, and kerosene rose 5 yen per 18 liters (one standard tank) to 2,120 yen.

Gasoline prices in Japan have been steadily rising recently, with the nationwide average price as of July 5th being 154 yen, marking an 8-week consecutive increase since mid-May. Many gas stations raised their gasoline prices at the beginning of July, and a price increase is expected in the tabulation report to be released in the second week of July.

Gasoline prices recorded 127.3 yen per liter on July 7, 2020, and remained around 130 yen throughout 2020. However, gasoline prices began to rise again from the beginning of 2021. As the global rollout of COVID-19 vaccines accelerated, expectations for economic recovery grew, leading to a rise in crude oil prices, which in turn impacted gasoline prices.

In April 2024, gasoline prices stabilized around 147 yen, but after the Golden Week holidays in May, they started rising again and are currently at around 154 yen. This price increase is expected to continue for some time. Currently, gasoline prices are likely to surpass the highest level since October 24, 2018 (156.9 yen), after about 2 years and 9 months. The surge in gasoline prices in 2018 was mainly caused by the continued cooperative production cuts between OPEC member and non-member countries and the US President Trump's re-imposition of economic sanctions on Iran, which led to a global ban on Iranian crude oil imports.

Since the COVID-19 pandemic, crude oil price fluctuations have been heavily influenced by the global COVID-19 infection situation. Recently, as vaccination has expanded globally and economic activities have resumed, it has led to a surge in crude oil prices. On July 6th, crude oil prices reached $76.98 per barrel, the highest level since November 2014, in 6 years and 8 months. The main cause of the surge in crude oil prices is the fact that OPEC and OPEC+, a group that includes non-member countries such as Russia, failed to reach an agreement on reducing the scale of production cuts, making it difficult to expect an increase in market supply.

Going forward, crude oil price fluctuations are expected to significantly impact gasoline prices, so continuous attention is needed. During periods of rising gasoline prices, it's also important to pay attention to discount price information offered by gas stations. You can utilize various discount information, such as using gas station price information sites like gogo.gs, gas stations that issue coupons through their LINE accounts, or gas stations that offer discounts when using credit cards affiliated with oil companies. Additionally, some gas stations provide advance notice of price increases through SNS, so following them and checking for updates is helpful.

Referring to the 'Prefectural Average Gasoline Price Ranking' provided by gogo.gs is also a good way to check if the price of your usual gas station is high. Since gasoline prices vary by region, choosing a gas station based on the average price in your area is economical.