The average retail price of regular gasoline in Japan has exceeded ┬е185 per liter for the first time in 17 months, reflecting reduced government subsidies to oil wholesalers, the industry ministry said Wednesday.
The average gasoline price shot up ┬е4.40 from a week before to ┬е185.10 as of Monday. The average price last topped ┬е185 on Sept. 4, 2023, when it hit a record high of ┬е186.50.
Average pump prices rose in all 47 prefectures of the country, six of which saw the prices hit ┬е190 or more. Kochi Prefecture had the highest price, at ┬е193.60, followed by Nagano Prefecture at ┬е193.50. Iwate Prefecture had the lowest average price at ┬е177.80.
The government started to cut back on subsidies in December.
If gasoline prices exceeded the base price of ┬е168, the government initially subsidized 60% of the gap between the base price and pump prices of up to ┬е185. Subsidies were then reduced to 30%.
Starting Thursday, the government is no longer offering subsidies for gasoline prices of up to ┬е185. It still, however, provides subsidies for any prices exceeding ┬е185.
Shortly after the subsidy cut in December, the nationwide average gasoline price surged from around ┬е175 to around ┬е180. The ministry had expected the price to rise further.
The Oil Information Center of the Institute of Energy Economics said it expects the average price to stay around ┬е185.
