Japan’s average retail gasoline price hit an all-time high of 190.8 yen per liter this Monday, fueled by soaring crude oil costs following the outbreak of war between the U.S., Israel, and Iran. The 29-yen weekly surge—the largest since records began in 1990—shattered the previous record of 186.5 yen. The crisis has been intensified by the effective closure of the Strait of Hormuz, a critical artery for Japan’s energy imports.
To shield consumers, the government will trigger a massive 30.2-yen-per-liter subsidy starting March 19. Prime Minister Sanae Takaichi stated the measure is essential to prevent prices from breaching the psychological 200-yen barrier. While the government aims to pull pump prices back down to around 170 yen, motorists are warned that the relief won’t be immediate.
Because gas stations must first clear inventory purchased at higher wholesale rates, retail prices may take up to two weeks to stabilize. The Ministry of Economy, Trade and Industry (METI) confirmed that prices rose in all 47 prefectures, with some regions already nearing 200 yen. This volatility follows a period of relative stability where prices hovered near 155 yen after a tax surcharge was removed.
The primary driver of the spike was the sudden jump in West Texas Intermediate (WTI) crude futures, which briefly touched $119 per barrel after the initial attacks on Iran. Although crude has since moderated to between $80 and $100, the lag in the refining and shipping process forced wholesalers to pass on significant costs. Japan’s reliance on imported fuel has once again put its domestic economy at the mercy of geopolitical strife.