The average retail price of regular gasoline in Japan has exceeded ┬е180 per liter for the first time in 15 months as the government started reducing subsidies, the industry ministry said Wednesday.
The national average at the pump as of Monday climbed ┬е4.8 from a week before to ┬е180.6, posting an increase for the seventh straight week.
The government on Thursday started lowering the subsidies that have been provided to oil wholesalers to curb a surge in gasoline prices.
The average gasoline price rose in all 47 prefectures, with Nagano marking the highest price, at ┬е190.8, the only prefecture to surpass ┬е190, followed by Kochi’s ┬е188.9.
Iwate marked the lowest price, at ┬е173.9, while Miyagi showed the steepest rise of ┬е7.6.
The lower subsidies also affected prices of other oil products. The average retail price of gas oil went up ┬е4.9 from a week before to ┬е160.3, while that of kerosene gained ┬е4.5 to ┬е122.3.
Retail gasoline prices are expected to change in a narrow range through early January, the Institute of Energy Economics’ Oil Information Center said.
But the average gasoline price is likely to start climbing again, toward ┬е185, after the government cuts the subsidies further on Jan. 16.
