Good news at the petrol pump here in Niigata

If you drive in Japan, there was some good news this week coming from the petrol pump!

Fuel prices in Niigata dropped below 160 yen per liter for the first time in four years and two months, landing at an average of 158.3 yen as of December 15th. That's a 4.4 yen drop from the previous week, and it marks the sixth straight week of declines. While it probably doesn't sound like a very significant sum, for anyone who relies on a car for commuting, school runs, or winter errands, it adds up quickly.

Image created via Canva

Prices are falling mainly because the government has raised subsidies before the provisional gasoline tax is removed later this month. As of December 11th, subsidies reached 25.1 yen per liter, effectively smoothing out what could have been a sudden price change. Falling crude oil prices are also helping, and some gas stations are still selling fuel purchased before the subsidy increase.

It's not just regular petrol seeing relief. Premium dropped to 169.4 yen per liter, diesel fell to 148.1 yen, and kerosene (which many households rely on for winter heating) also edged down.

Even better, experts expect prices to fall again next week. For those of us who are juggling the myriad of rising living costs, this feels like a rare and very welcome win.