TOKYO - The average retail gasoline price in Japan hit a record high of 190.80 yen ($1.20) per liter, reflecting higher crude oil prices amid the Iran war, industry ministry data showed Wednesday, a day before state subsidies to keep fuel costs in check are set to resume.
The average price as of Monday was up 29.0 yen from March 9, matching the largest-ever margin of increase since comparable data became available in 1990, marking the fifth consecutive weekly gain. It eclipsed the previous high of 186.50 yen set in April 2025, when a weak yen inflated crude oil import costs.
U.S.-Israeli attacks on Iran that began on Feb. 28 and Iranian retaliation against Gulf countries have heightened concerns over energy supplies in resource-poor Japan.
The increase came ahead of the start of state subsidies aimed at keeping gasoline prices around 170 yen. Prime Minister Sanae Takaichi announced the measure last week, citing the possibility that prices could exceed 200 yen and saying government funds would be used.
The ministry said on Wednesday that subsidies of 30.20 yen per liter will be provided to petroleum suppliers for the week from Thursday.
The measure is expected to take around a week to be reflected in retail prices.
"We will make sure that the price will gradually decline to 170 yen," a ministry official said.
The subsidies will be reinstated less than three months after they ended on Dec. 31, 2025, the same time Japan's provisional gasoline tax of 25.10 yen per liter was abolished after over 50 years to ease the pain of households hit by the rising cost of living.
The end of the provisional tax resulted in the price of gasoline falling to its lowest level in around four and a half years in mid-January, providing relief for many businesses and car owners.
Around that time, the price fell as low as 154.70 yen, contributing to a slowdown in the country's nationwide inflation rate to 2.0 percent for the month, the lowest in two years.
The gasoline subsidy program started in January 2022 as an effort to curb rising fuel costs driven by higher crude oil prices amid concerns about Russia's war on Ukraine and the weak yen.
More than 8 trillion yen has been allocated in budgets over roughly four years since the measure was launched. The funds will also be used to cap prices of diesel fuel and kerosene.
Gasoline prices rose in all 47 prefectures as of Monday, the ministry said.
Diesel prices rose 28.60 yen from a week earlier to 178.40 yen, while kerosene prices climbed 507 yen to 2,774 yen per 18 liters, the standard home storage tank size.
