Motorists in Japan are facing the highest gasoline prices in the country’s history, with the national average hitting 190.8 yen per liter. This record-setting figure, announced by the Oil Information Center on Wednesday, comes as a direct result of the U.S.-Israeli conflict with Iran. The price represents a 29-yen increase in just seven days, a margin that has stunned the market.
The surge followed a period where fuel costs were stabilized at roughly 155 yen per liter after the removal of specific tax surcharges. However, the outbreak of war caused WTI crude to spike to $119 per barrel, leading wholesalers to implement a 26-yen price hike. This rapid escalation has made “filling up the tank” a significant financial burden for many families.
A government subsidy of 30.2 yen per liter will begin on March 19 to counter the trend. The goal is to keep the pump price near 170 yen and prevent it from climbing above 200 yen. Because gas stations sell inventory they previously purchased at higher rates, the price drop won’t be visible to consumers for at least a week or two.
Economists warn that prolonged high energy costs could hurt Japan’s broader economic recovery. With prices rising in all 47 prefectures, the government is under pressure to find long-term solutions to its energy dependency. For now, the 30.2-yen subsidy is the main tool being used to weather the storm.