Hope Growing for Halt to Pump Price Growth in Japan

Economy

Tokyo, April 5 (Jiji Press)--Expectations are mounting that retail gasoline prices in Japan, which have remained on an upward trend since May last year, may finally stop rising.

This is because oil wholesalers lowered gasoline wholesale prices for two weeks in a row recently after a resurgence of coronavirus infection cases in Europe pushed down crude oil prices. An agreement struck among major oil-producing nations to boost output in stages also fueled expectations for lower pump prices in Japan.

The average retail price of regular gasoline in Japan plunged to around 125 yen per liter in May 2020 due to the impact of the spread of the virus.

Later, the average price turned higher in tandem with growth in crude oil prices backed by hope for economic recovery in the United States and elsewhere. It topped 150 yen on March 29 for the first time in about 14 months.

Meanwhile, around late last month, domestic oil wholesalers, including Eneos Corp., cut wholesale pump prices for filling stations by 1-1.5 yen per liter.

[Copyright The Jiji Press, Ltd.]

Jiji Press