Starting December 19, gasoline and heating oil prices will see increases nationwide, primarily due to the government's reduction of subsidies provided to oil wholesaler companies. Affected regions like Aomori Prefecture are expected to witness price hikes ranging from 5 to 7 yen per liter. Projections indicate another increase around January 16 next year, which could see prices rise even higher.
At the moment, the average gasoline price as of December 9 stands at 171.10 yen per liter. Throughout the past year, prices have remained relatively stable at around 170 yen. Following the subsidy cuts, the price is anticipated to rise to approximately 175 yen shortly after December 19, with forecasts indicating potential climbs to 180 yen after mid-January.
Concerns are echoing throughout communities as residents brace themselves for these increases. 75-year-old Kyōji Yamauchi, filling up at his local service station, expressed frustration, stating, "If prices keep rising, it'll be tough for us. Heating oil costs are becoming increasingly burdensome.” He carries out daily tasks such as driving family members to and from hospitals, and every additional cost deeply impacts his household budget.
Similarly, another local resident, Katsunori Yagisawa, also aged 75, voiced his worries, particularly during the winter season when fuel consumption tends to spike due to heating needs. He lamented, "When gas prices go up, I might find it hard to get around with my vehicle—especially with winter tires on. It’s concerning.”
The government's subsidy program was first implemented back on January 1, 2022, intending to alleviate the financial load on households. This subsidy currently allows the average retail price of regular gasoline to remain below 175 yen per liter. Unfortunately, financial burdens have prompted the government to announce the phase-out of these subsidies, with reductions beginning on December 19 and anticipated to continue next January.
Fujimori Suke, the manager of Self Aoba SS—a gas station operated by Ōjika Industries—stated, "The subsidy reduction is inevitable. I believe we'll see price increases starting December 19. We are notifying our customers through our app to fill up before December 18."
Despite the noise surrounding these changes, some within the local oil business have tempered their expectations. Akio Koeda, director of the Aomori Petroleum Commercial Union, noted, "Government funding can’t last forever,” indicating some level of acceptance of the subsidy cuts. He warned, though, of the significant blow to consumers, especially with the winter months approaching. "With snow removal and other expenses, this will be tough for many businesses out there,” he concluded.
On the political front, discussions around gasoline tax regulations are also surfacing. The Liberal Democratic Party (LDP), Komeito, and the Democratic Party for the People reached consensus earlier this month advocating for the abolition of the temporary tax rate—currently set at 25.1 yen per liter—applicable to gasoline prices. Specific timing for this tax reduction, unfortunately, remains unclear.
Adding to these worries, many consumers are already confronting the consequences of rising oil prices as they prepare for the impact on their finances. Reports indicate five consecutive weeks of price increases leading up to the recent announcements. Gasoline prices are set to escalate as the subsidy cuts are implemented, and fears over increased living costs loom large.
Industry experts warn consumers should act quickly. Many stations, especially within regions like Fukui, have seen spikes in customer turnout as residents rush to fill their tanks before prices jump. One 49-year-old employee taking advantage of the rush stated, "With wages not increasing as fast as prices, these hikes hit directly at our wallets. I might just keep my outings limited for now.”
Meanwhile, Fukui resident and 71-year-old retiree shared his frustration. He received alerts from his station via LINE to fill up by December 18. “I usually fill up around 40 liters monthly, so at 5 yen increase, that's about 200 yen extra—significant for people living here, especially with winter heating costs looming,” he added, highlighting the burden soaring fuel prices impose on his household.
Overall, consumers are hopeful for relief as political figures address how to counter the continuing wave of inflation affecting everything from gasoline to daily necessities. But for now, the increase is on the horizon, and many are preparing for its imminent arrival.
Gasoline prices currently hover around 190 yen per liter, predominantly supported by government subsidies. These protections are set to dwindle significantly, impacting not just prices but consumers' wallets and their day-to-day activities.
