When Korea's Gas Prices Rose by 300 Won, Japan's Increased Only 30 Won... The Secret Behind Stable Fuel Costs Amid War [Report]

No Panic Buying at Gas Stations: "We Don't Feel the Impact Yet"
Concerns Rise Over Possible Increases in Public Transport Fares if Situation Prolongs
Transport Industry, Including Taxi Drivers, Remain Vigilant

Gas stations in Tokyo appeared no different from usual. Despite growing concerns over a potential surge in international oil prices following the U.S. and Israeli airstrikes on Iran, no clear impact has been observed locally so far. However, there was a sense of unease that if the upward trend in prices continues, it could affect everyday life.

On the afternoon of March 9, checks at four gas stations in the Shibuya and Setagaya districts of Tokyo revealed no lines of cars gathering to hoard fuel; in fact, they were rather quiet. An employee at a gas station in Daikanyama, Shibuya, replied briefly, “There have been no unusual changes yet.” Drivers also did not seem to feel a sharp increase in fuel prices. Seoinseong, a Korean national encountered at a gas station, said, “At this level, prices have not risen much, so I filled up as usual,” adding, “However, since gasoline prices in Japan have previously reached 180 yen (1,674 won) per liter, I am worried that it might get that high again.”

A gas station located in Shibuya Ward, Tokyo. As usual, a customer is refueling. Photo by Jeongyoung Jeon.

Most of the gas stations visited that day had gasoline prices hovering in the 150-yen (1,406 won) range per liter. This represented an increase of about 2 to 5 yen (18.61 to 46.52 won) compared to the previous week. According to the Japanese gas station price information platform Gogo.gs, the average gasoline price across Tokyo that day was 156.4 yen (1,466.3 won) per liter, up just 3.3 yen (30.9 won) from the previous week.

Several structural factors are cited as reasons for this price stability. First is Japan’s large-scale oil stockpiling system. After the oil shock of the 1970s, the Japanese government established an oil stockpiling system. Currently, the combination of government reserves and private inventory secures enough oil for about 254 days of domestic consumption. This is considered to serve as a buffer against sudden price spikes caused by market instability.

The Japanese government has also been actively managing oil prices as part of its measures against high inflation. At the end of last year, it abolished the provisional tax rate on gasoline to reduce the tax burden and has temporarily provided subsidies to refiners to control price increases. Additionally, unmanned gas stations—which outnumber manned stations and reduce labor costs—as well as fierce competition among operators through point accumulation and credit card discounts, are cited as further reasons for preventing steep price hikes.

However, there are concerns that if the situation drags on, the current stability could be shaken. On March 4, the Agency for Natural Resources and Energy announced that the average retail price for regular gasoline rose 1.4 yen (13 won) from the previous week to 158.5 yen (1,481.7 won) per liter, the highest level in three months. Some stations have already signaled price hikes of more than 10 yen (93.4 won) from next week, raising the likelihood that the increase in oil prices will soon be reflected in consumer prices. Inomata Shuhei, a man in his 20s who lives in Setagaya, said, “Even if prices have only risen by a few yen, since I drive frequently, I can’t help but pay attention to the news from the Middle East,” adding, “Even if I don’t drive, public transportation fares for things like subways and buses will eventually be affected, too.”

Another gas station located in Shibuya Ward, Tokyo. Customers are refueling without hoarding. This station had the highest price among those visited at 176 yen (1,649 won) per liter of gasoline, but the price increase was limited to about 5 yen. Photo by Jeon Jin-young.

There are also growing concerns about the supply of other energy sources, such as natural gas from the Middle East. Takao Yamazaki, a taxi driver in his 70s, said, “Unlike what’s being reported in the news, I haven’t really felt a sharp increase in fuel prices yet,” but added, “Most taxis run on liquefied petroleum gas (LPG), so I’m actually more worried about gas prices being affected by the Iran issue.”

The Japanese government has quickly moved to devise countermeasures, reportedly even considering releasing oil reserves. On the previous day, Minister Sanae Takaichi stated during the budget committee session of the House of Representatives that “measures are being reviewed—including for electricity and gas rates—to ensure prices don’t rise to levels unbearable for the public,” adding that reserve funds will be tapped to provide financial resources.

This content was produced with the assistance of AI translation services.