The average retail price of regular gasoline in Japan has exceeded ¥180 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 ¥4.8 from a week before to ¥180.6, 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 ¥190.8, the only prefecture to surpass ¥190, followed by Kochi’s ¥188.9.
Iwate marked the lowest price, at ¥173.9, while Miyagi showed the steepest rise of ¥7.6.
The lower subsidies also affected prices of other oil products. The average retail price of gas oil went up ¥4.9 from a week before to ¥160.3, while that of kerosene gained ¥4.5 to ¥122.3.
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 ¥185, after the government cuts the subsidies further on Jan. 16.
