Japan Pump Prices Hit 41-Month High

May 9, 2018

Tokyo- The average retail price of regular gasoline in Japan as of Monday rose 0.4 yen from a week before to 145.9 yen per liter, hitting the highest level in about three years and five months, the Agency for Natural Resources and Energy said Wednesday.

The rise reflected increasing crude oil prices due to speculation over a possible decline in oil supplies after the United States restarts sanctions against Iran.

On Tuesday, President Donald Trump announced a decision to withdraw the United States from the 2015 nuclear deal between Iran and major powers. The U.S. government will restart oil trade-related sanctions after 180 days.

Retail gasoline prices rose in 39 prefectures. Aichi saw the sharpest increase, with a 1.6 yen rise, followed by Okinawa, with 1.4 yen, and Saga, with 1.1 yen. Hokkaido and three other prefectures posted price drops. In Saitama and three other prefectures, prices were unchanged.

An official at the Oil Information Center, which conducts the survey for the government agency, said that with crude oil prices remaining high, retail gasoline prices are expected to rise further next week. Jiji Press