Economy Skyrocketing gasoline prices due to weak yen

[thomas]

Ouch, the weak yen has pushed gasoline prices in Japan to a 15-year high, forcing the government to announce an extension of subsidies to ease the burden on motorists.

Photo credit: Nanami Sato​

The price of regular gasoline on Monday was 185.6 yen ($1.28) per litre, up 1.9 yen from the previous week, according to the Agency for Natural Resources and Energy. Fifteen weeks of consecutive increases have pushed the cost past a level last seen in August 2008. The extension of subsidies, due to expire at the end of September, to the end of the year will push the retail price down to about 175 yen per litre. While this will bring temporary relief, industry and consumers remain concerned.

PM Kishida also said he hopes to see gasoline prices pushed down to around 175 yen in Japan by the end of October as the economy faces downturn risks against global commodity price hikes.

PM Kishida pledged Wednesday to ensure lower domestic gasoline prices after industry ministry data showed that the average retail price has risen for the 15th straight week to its highest-ever level. Kishida also told reporters that his government will implement new economic measures to ease the negative impact of price hikes. He will also seek to extend the subsidy program for oil wholesalers, which was supposed to taper off toward the end of September.

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