Japan Gas Prices Soar To Record High

The price of regular gasoline at pumps in Japan has reached a new high after 16 consecutive weeks of increases, as announced by the country's economy ministry, Kazuki Sakuma reported for Mainichi Shimbun.

In response to this surge, the government will begin expanding gas wholesaler subsidies on Sept. 7 in an effort to curb prices.

The average price for a liter of regular gasoline now stands at 186.5 yen (approximately $1.27), marking an increase of 9/10s of a yen from the previous week, according to the Ministry of Economy, Trade and Industry (METI).

In response to this surge, the government will begin expanding gas wholesaler subsidies on Sept. 7 in an effort to curb prices. The timing of when these subsidies will have an impact may vary due to factors such as the current stock levels at gas stations.

Nonetheless, METI anticipates that prices will start to decrease around mid-September, with the national average expected to drop to approximately 180 yen by the end of the month and further easing to around 175 yen by the conclusion of October.

Japan's government has been subsidizing gasoline since January 2022, prior to Russia's invasion of Ukraine.

These subsidies had been gradually reduced as the price of crude oil began to stabilize in June, but the rising costs of crude oil and the weakening yen have caused gas prices to surge.

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