News On Japan

Doubling Of Heavy Oil Costs Hits Tea Production

TOKYO - Heavy oil prices have doubled over the past six months, placing mounting pressure on Japan’s green tea producers and transport sectors as Prime Minister Sanae Takaichi announced on April 10th that the government will release an additional 20 days’ worth of national oil reserves in an effort to ease supply bottlenecks.

Uncertainty remains over whether tankers can safely pass through key maritime routes, raising concerns about stable fuel supply, as Takaichi emphasized that while Japan has secured sufficient overall volumes, distribution has not reached all sectors evenly.

Takaichi said: "We have heard concerns regarding the supply of heavy oil needed for green tea production entering its peak season, as well as diesel fuel for public infrastructure such as buses and trucks. We ask that bottlenecks in fuel supply be resolved as quickly as possible."

At production sites, the strain is already evident.

In Shimada City, Shizuoka Prefecture, the first harvest of the year’s green tea crop was underway ahead of the full-scale new tea season.

Takahide Otsuka, executive managing director of Otsuka Seicha, described the quality of the early harvest, saying: "It is sweet, rich, highly aromatic, and beautifully colored — a tea that possesses all the essential qualities."

However, as the one-month shipping season begins, concerns are growing over fuel costs.

Freshly picked tea leaves must be processed immediately through steaming to prevent oxidation, a process that relies heavily on fuel oil.

Otsuka explained: "We store 70,000 liters of heavy oil beneath this facility, but even that amount is used up within a week at this factory."

Heavy oil prices, which stood at 100 yen per liter in autumn 2025, have surged to 200 yen per liter, doubling in just half a year.

As a result, fuel expenses for the remaining three weeks of the tea season have ballooned from 21 million yen to 42 million yen.

Otsuka said: "War is beyond our control, but there is no doubt we are affected by it. Tea buds continue to grow, so there is no time to wait."

In addition to supply bottlenecks, crude oil prices remain elevated. Amid ongoing uncertainty surrounding ceasefire negotiations, futures prices temporarily climbed to the 102-dollar-per-barrel range.

Persistently high energy costs are also expected to weigh further on households.

Nozomu Mori, chairman of the Federation of Electric Power Companies of Japan, warned: "As early as around June, electricity bills could rise due to the situation in the Middle East."

Prices for liquefied natural gas, used as fuel for thermal power generation, have also surged, raising the likelihood of higher electricity bills in the summer when demand increases due to air conditioning use.

Even as the government proceeds with releasing oil reserves, there is little indication that elevated energy prices will ease, signaling increasingly difficult conditions for both businesses and households across Japan.

Source: TBS

News On Japan
POPULAR NEWS

Typhoon No. 25 was moving away from Japan over waters to the east early on September 22, bringing an end to rainfall across the Kanto region while remaining a strong storm as it tracked northeast at 45 kilometers per hour at 3 a.m.

Severe transport disruption continued across Chiba Prefecture on the morning of September 22 even as Typhoon No. 25 moved away from Japan, with major JR lines still suspended, rail access to Narita Airport disrupted by river flooding, highways closed across the Boso Peninsula and thousands of travelers dealing with the aftermath of the previous day's cancellations.

Japan collected another 12 medals on Day 3 of the Aichi-Nagoya Asian Games on September 21, with 17-year-old swimmer Shin Ohashi and karateka Kakeru Nishiyama winning gold, while the host nation also advanced strongly in women's volleyball, baseball, soccer, handball and hockey.

People aged 65 and older accounted for a record 29.6% of Japan's population in 2026, the highest proportion among major countries worldwide, while the number of elderly people in employment also reached an all-time high as Japan marked Respect for the Aged Day on September 21.

Emperor Naruhito and Empress Masako watched Japan defeat Kazakhstan in a women’s basketball preliminary-round game at the 20th Asian Games in Nagoya.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo’s stock market was closed on September 21 for Respect for the Aged Day, leaving the Nikkei 225 without a cash close after finishing the previous session at 65,019, while currency and futures markets focused on the yen, the Bank of Japan’s latest rate hike and intervention risks during Japan’s Silver Week holiday.

Japan's first five-day Silver Week holiday in 11 years has put renewed attention on household finances, with persistently high food prices and a weakening yen threatening to erode the benefits of the government's planned consumption tax cut on food.

A list of providers with identical promises turns selection into brute-force sorting. The differences do exist; they are just hidden somewhere other than the homepage.

The Bank of Japan raised its policy rate from 1.0% to 1.25% on September 18, taking borrowing costs to their highest level in 31 years and accelerating the pace of monetary tightening as persistent inflation and concerns over fiscal expansion put upward pressure on interest rates.

The yen strengthened by more than 1 yen against the dollar in a short period late on September 18 after the Bank of Japan conducted a rate check, a step commonly taken in preparation for possible intervention in the foreign exchange market.

Tokyo stocks rose sharply on September 18, with the Nikkei 225 climbing to around 65,350 in afternoon trading after the Bank of Japan raised interest rates to 1.25%, as the yen weakened and investors bought artificial intelligence and semiconductor-related shares.

The Bank of Japan raised its policy interest rate from 1.0% to 1.25% on September 18, lifting borrowing costs to their highest level in 31 years as policymakers moved to contain growing inflation risks, but the yen weakened sharply after the decision as markets focused on two dissenting votes and uncertainty over the pace of further increases.

A market spread is generally the difference between two market prices. Most commonly, traders use the term to describe the bid-ask spread: the difference between the highest price a buyer is currently prepared to pay and the lowest price a seller is prepared to accept.