Japan gasoline price hits record-high amid Iran crisis
The average retail gasoline price in Japan has reached a record high of 190.80 yen ($1.20) per liter, driven by rising crude oil costs linked to the Iran war, according to data released by the industry ministry on Wednesday.
The average price as of Monday marked a sharp increase of 29.0 yen from March 9, matching the largest weekly rise since comparable records began in 1990. It also surpassed the previous record of 186.50 yen set in April 2025, when a weak yen pushed up import costs, News.Az reports, citing Kyodo.
Escalating tensions following U.S.-Israeli attacks on Iran and Tehran’s retaliation in the Gulf have raised concerns over energy supplies in resource-dependent Japan.
The surge comes just ahead of the government’s decision to reinstate fuel subsidies aimed at keeping gasoline prices around 170 yen per liter.
Prime Minister Sanae Takaichi announced the measure last week, warning that prices could exceed 200 yen without intervention.
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Starting Thursday, subsidies of 30.20 yen per liter will be provided to petroleum suppliers, though it may take about a week for the effect to be reflected in retail prices.
Officials said the goal is to gradually bring prices back down to around 170 yen.
The subsidy program is being reintroduced less than three months after it ended on December 31, 2025, when Japan also abolished its provisional gasoline tax of 25.10 yen per liter after more than 50 years.
That move had briefly lowered prices to around 154.70 yen in mid-January, easing pressure on households and contributing to a slowdown in inflation to 2.0 percent, the lowest level in two years.
Originally launched in January 2022 to counter rising fuel costs linked to the war in Ukraine and currency weakness, the subsidy program has already cost more than 8 trillion yen over four years. It also covers diesel and kerosene prices.
As of Monday, gasoline prices increased across all 47 prefectures. Diesel rose 28.60 yen to 178.40 yen per liter, while kerosene climbed by 507 yen to 2,774 yen per 18 liters.
By Nijat Babayev
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