Japan’s average petrol price hits a record 190.80 yen per litre, driven by Middle East conflict and soaring crude oil costs, prompting government subsidies.

TOKYO: Japan’s average retail petrol price has surged to a record high of 190.80 yen per litre, according to industry ministry data released on Wednesday.

This new peak, equivalent to approximately US$1.2 per litre, reflects sharply higher crude oil prices driven by the ongoing conflict involving Iran.

The price recorded on Monday marked a rise of 29.0 yen from the level on March 9, representing the fifth consecutive weekly increase.

It surpassed the previous all-time high of 186.50 yen per litre recorded in April 2025.

Market analysts attribute the surge to heightened energy supply concerns following US-Israeli attacks on Iran launched on February 28 and subsequent Iranian retaliation against Gulf countries.

The price increase occurred just before the implementation of new state subsidies designed to cap prices at around 170 yen per litre.

Prime Minister Sanae Takaichi announced the subsidy measure last week, citing the possibility that prices could otherwise surpass 200 yen.

She stated that a government fund would be utilised to provide the financial support.

The ministry confirmed that subsidies of 30.20 yen per litre will be provided to petroleum suppliers for the week starting Thursday.

 The Sun Malaysia