Japan's gasoline wholesale price is set to increase by 26 yen per liter starting from the 12th, a move driven by rising crude oil prices amid escalating tensions in Iran. Industry insiders report that after the price hike, the average gasoline price across the country could exceed 180 yen. Previously, the average price for regular gasoline had been around 161.8 yen as of the 9th, reflecting a rise from previous weeks, but was still impacted by the removal of a temporary tax rate that was in place last year.

In recent weeks, the prices of crude oil, which is an essential driver of gasoline prices, have seen considerable fluctuations. The futures price of West Texas Intermediate (WTI) crude oil spiked temporarily above 119 dollars per barrel, compared to values around 65 dollars prior to increased tensions involving the U.S. and Israel conducting operations against Iran. Taking these fluctuations into account, oil companies are appropriately adjusting their wholesale prices every Thursday based on the previous week’s crude oil market.

As a result of the anticipated price hikes, stakeholders in the gasoline distribution industry predict that the increase could be close to 30 yen when including consumption tax. They express concern that gas stations will have to pass on these increased costs to consumers, with some suggesting that prices could escalate to historic highs, possibly exceeding 186.5 yen and even reaching 200 yen temporarily. In response to the soaring gasoline prices, the Japanese government is contemplating support measures aimed at alleviating the financial burden on households and businesses.