Japan's nationwide average price for regular gasoline rose for the third consecutive week to ¥169.7 per litre [1].
This trend reflects the ongoing struggle to stabilize energy costs for consumers. While prices are climbing, the Japanese government continues to intervene through financial support to prevent sharp spikes that could trigger broader inflation.
According to data as of April 27, 2026, the average price increased by ¥0.2 per litre from the previous week [2]. The Agency for Natural Resources and Energy said these figures on Thursday [2].
To keep fuel costs near a target of ¥170 per litre, the national government provides subsidies directly to oil refiners [3]. These payments are designed to absorb the volatility of global crude oil markets — a strategy that has kept recent weekly fluctuations relatively small.
For the period between May 1 and May 13, the government subsidy amount is set at ¥39.7 per litre [1]. Without this intervention, the market would face significantly higher costs for drivers across the country.
Looking ahead, the Petroleum Information Center expects price movements to remain modest due to the impact of these subsidies [1]. However, projections for the week of May 1 to May 13 suggest a potential increase of ¥8.8 per litre compared to the previous week [1].
Government officials said the subsidies are necessary to maintain economic stability. The Agency for Natural Resources and Energy said the current average price of ¥169.7 per litre remains just below the government's target threshold [3].
“The nationwide average price of regular gasoline rose for the third consecutive week to ¥169.7 per litre.”
The Japanese government is utilizing a targeted subsidy mechanism to decouple domestic pump prices from global oil market volatility. By capping prices near ¥170 per litre, the state is prioritizing short-term consumer price stability over market-driven pricing, though the projected increase for early May suggests that sustaining this ceiling requires increasing fiscal expenditure.
