The gasoline price manipulation investigation taking place in Nagano Prefecture has sparked significant public concern and political scrutiny. It was reported on February 28, 2025, by the Nagano Prefectural Oil Retailers Association, which stated it could not confirm any wrongdoing among the gas stations after being investigated for allegedly coordinating price changes. Association chairman Hidemichi Takamizawa presented these findings to Governor Nobuhiro Abe, who expressed skepticism about the neutrality of the report during their meeting.
On February 6, 2025, the prefectural government had requested the association to investigate the possibility of price adjustments and report back within two weeks. Subsequently, Takamizawa convened representatives from eight branches of the association to discuss the matter. This meeting was initially planned to lead to the establishment of a third-party committee; unfortunately, this initiative was halted when the Japan Fair Trade Commission announced it would conduct its own investigation on February 18, suspecting the existence of anti-competitive practices among local gas stations, which would violate antitrust laws.
The association’s interim report indicated, "We confirmed there was no evidence of any wrongdoings," but this reassured few, as Governor Abe’s reaction suggested significant distrust. He demanded more thorough investigations, asserting, "I strongly wish to clarify the actuality of the situation. The association’s response is not sufficient to satisfy the public." This highlights the tension between the regulatory body and the gas stations amid increasing scrutiny of the rising gasoline prices in the region.
Gasoline prices have been soaring, and on February 28, 2025, the Nagano Prefectural Assembly unanimously passed a resolution requesting the government to take prompt measures. Their resolution underscored the impact of rising fuel costs on households and businesses, reflecting growing public discontent over the financial burden. The rising prices, attributed to the gradual reduction of government subsidies, continue to affect the local economy significantly.
Abe pointed to the importance of transparency, stating, "It is necessary to declare and commit never to partake in any suspicious activities," emphasizing compliance with fair market practices. He urged for adherence to governance dictated by neutral third parties to restore trust among the public.
Takimizawa responded by expressing the need for guidance from the national association, indicating he would consult with them to reassess the situation and possibly implement changes to restore public confidence. Despite his emphasis on the absence of coordination among gas stations, doubts linger among the public and officials alike.
Adding to the discourse around this investigation are testimonies from several gas station operators. Some have indicated there were communications among them concerning price changes. A whistleblower detailed receiving phone calls alerting them of changes, indicating organized communications may have influenced retail prices, raising serious legal and ethical questions.
One independent gas station operator recounted how "we would receive calls indicating how much we were adjusting prices," asserting such communications were informal but seemingly aligned with market practices. This adds complexity to the investigation, as the Chairman of the association distanced the organization from any wrongdoing, claiming, "We do not control prices; it’s merely sharing of information about market conditions."02c
News reports have also alleged similar communications reached other gas stations, including those not part of the association, demonstrating potential collusion beyond the association’s membership. One run by the JA Green Nagano reported receiving calls up until June 2024 about price adjustments from the association’s contacts.
Despite claims of independent decision-making, it raises the question of whether true competition exists or if price adjustments are simply being coordinated behind the scenes, which could deny fair market competition to consumers.
With February 2025’s average retail price for regular gasoline reaching ¥191.7 per liter, it remains one of the highest prices nationally, exacerbated by rising global oil prices and decreased domestic supply. Neighbouring prefectures report significant disparities, with prices differing as much as ¥15 compared to neighboring Aichi and Shizuoka.
The controversy surrounding the pricing practices of gas stations points to broader issues within the industry and calls for more stringent oversight from both local and national authorities. The Fair Trade Commission’s involvement highlights the seriousness of the allegations and the urgency for accountability within the industry's operations.
Governor Abe has called for immediate actions to address the rising prices and restore public trust. It remains to be seen how the investigation will evolve, particularly with concerns over adherence to market laws and the ethical conduct of business practices. The call for strong oversight reflects broader public sentiments throughout Nagano Prefecture as residents continue to grapple with the financial burdens imposed by soaring gasoline prices.