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
