The average retail gasoline price in Japan has climbed to its highest level in 15 years, industry ministry data showed Wednesday, as the government subsidy to curb price hikes has been gradually scaling down.
The average price for regular gasoline stood at 176.70 yen ($1.24) per liter as of Monday, advancing 1.90 yen from July 24 and hitting its highest level since August 2008, according to the Ministry of Economy, Trade and Industry.
The price is expected to increase and affect households if the government halts the subsidy program, designed to curb the impact of a surge in gasoline and other fuel prices, at the end of September as planned.
The program began in January 2022 and was extended several times to keep the average retail price of gasoline at 168 yen per liter.
While crude oil prices have been rising after Russia's invasion of Ukraine, the upward trend was supported by additional oil production cuts by oil-producing countries, including Saudi Arabia, according to the ministry.
Gasoline prices are projected to continue rising through next week, according to an official of the Oil Information Center, which conducted the survey.
In August 2008, gasoline prices marked a record-high 185.10 yen, as China's oil consumption increased, while speculative funds flowed into the crude oil market in large quantities.
© KYODO