Doubling Of Heavy Oil Costs Hits Tea Production

Apr 10, 2026 | News On Japan

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

Typhoon No. 15 Expected to Make Landfall in Eastern Japan on August 11

Typhoon No. 15 (Chan-hom) is increasingly likely to make landfall between Fukushima and Ibaraki prefectures on the Pacific coast of eastern Japan from the evening through the night of August 11, after moving northwest over waters east of Japan at about 15 kilometers per hour as of 9 a.m. on August 10.

Raccoon Damage Surges Across Japan

Raccoons are increasingly invading homes across Japan, damaging roofs and wiring, contaminating buildings with large amounts of urine and feces, and raising concerns over agriculture, native wildlife and the spread of disease as their population continues to expand.

Nagasaki Marks 81st Anniversary With Call to Uphold Non-Nuclear Principles

Nagasaki marked the 81st anniversary of the U.S. atomic bombing on August 9 with a memorial ceremony near the hypocenter, where Mayor Shiro Suzuki declared nuclear weapons an "absolute evil" and called on the Japanese government to uphold its Three Non-Nuclear Principles.

Flights Still Disrupted After Typhoon No. 13 Hits Okinawa

Transport services were gradually returning to normal on August 9 after Typhoon No. 13 caused widespread cancellations and shutdowns across Okinawa, although air travel remained disrupted as airlines worked to restore schedules and accommodate passengers stranded during the opening days of Japan's busy Obon holiday period.

Typhoon No. 13 Moves West but Severe Weather Lingers in Okinawa

Typhoon No. 13 was moving slowly west on the night of August 8 and was expected to approach the Chinese mainland by the night of August 9, but Okinawa, Amami and parts of southern Kyushu remained at risk from strong winds, intermittent heavy rain and dangerous seas even as the storm's center moved farther away.

MEDIA CHANNELS

MORE Business NEWS

Nikkei Rises as AI Buying Returns and BOJ Rate-Hike Bets Build

Tokyo stocks rose on August 10, with the Nikkei 225 closing at 66,376.25, up 1.2%, as investors bought electronics, metals and artificial intelligence-related shares, while fresh signs of a more hawkish Bank of Japan debate kept attention on the yen, bond yields and the timing of the next rate increase.

Japan Posts 92.3 Billion Yen Current Account Deficit in June

Japan recorded a current account deficit of 92.3 billion yen in June, its first shortfall in 17 months, as a sharp increase in import costs outpaced growth in exports.

BOJ Debate Shifts Toward Quicker Rate Hikes

Several Bank of Japan policymakers have signaled support for accelerating interest rate increases, with one member warning that the pace of hikes could become faster than financial markets currently expect as the central bank pays greater attention to upside inflation risks.

Yen Unlikely to Repeat 2024 Summer Surge as U.S. Rates Stay High

A repeat of the sharp yen appreciation seen in the summer of 2024 is unlikely under current conditions, with persistently high U.S. interest rates and continued structural pressure on Japan's currency making another rapid surge difficult, according to UBS wealth management chief investment officer Daiju Aoki.

Japanese Companies Report Strong Profits as AI, Energy and Consumer Demand Drive Earnings

Japanese companies delivered a wave of strong earnings on August 7, with Fujikura, Recruit Holdings, INPEX and several other major groups raising forecasts as artificial intelligence investment, higher resource prices and resilient consumer demand lifted profits.

Nikkei Slips as Chip Selling Offsets Broader Market Strength

Tokyo stocks ended slightly lower on August 7, with the Nikkei 225 closing at 65,606.71, down 76.55 points, or 0.12%, as selling in chip-related and artificial intelligence-linked shares outweighed solid buying in the broader market and a late recovery led by Fujikura.

Nippon Steel Targets High-Performance Steel

Nippon Steel has completed a new production line at its Nagoya Works after investing about 300 billion yen, as Japan's largest steelmaker seeks to expand production of high-performance steel products primarily for automakers.

Hokkaido Minimum Wage Sets New High

Hokkaido's minimum wage is expected to rise by 56 yen to a record 1,131 yen per hour in October, entering the 1,100-yen range for the first time, but workers and business owners are concerned that tax and social insurance thresholds could lead employees to limit their hours.

< 2 3 4 5 >