Japan Press Weekly

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2013 February 6 - 12 [ECONOMY]

Co-op representatives call for adjustment of kerosene price

Calling for prices of kerosene to be adjusted and its supply to be stabilized, representatives of the Japanese Consumers’ Cooperative Union (JCCU) in seven prefectures of northern Japan on February 6 made representations to the industry ministry, the consumer agency, and the Petroleum Association of Japan.

They represent the JCCU in Hokkaido, Aomori, Iwate, Akita, Miyagi, Yamagata, and Fukushima prefectures.

The rise in kerosene prices is sharper than in crude oil prices, and kerosene is now more expensive than gas, they pointed out, stressing that this deals a huge blow to local economies and residents’ livelihoods especially in areas hit by the 3.11 disaster.

Parliamentary Vice Industry Minister Taira Masaaki said that he will convey their request to Minister Motegi Toshimitsu and issue instructions to the industry.

The Petroleum Association of Japan told the JCCU representatives that it is not in a position to dictate prices to its member companies. Maekawa Kazuhiro of the Hokkaido ICCU responded by stressing that oil distributers are responsible for explaining the reason for the price hike.

As reasons for the rise in kerosene prices, Maekawa cited the drop in the value of the yen and speculative investment involving oil distributors.

On February 6, the Agency for Natural Resources and Energy announced that the average shop price of 18 liters of kerosene was 1,803 yen, an increase of more than 10% in the last 10 weeks. The price went over 1,800 yen for the first time in the last 4 years and 3 months since October 27, 2008 when it reached a high of 1,943 yen.

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Japanese Communist Party Upper House members Kami Tomoko and Daimon Mikishi as well as representatives of the JCP Hokkaido Prefectural Committee on February 8 made similar representations to four government ministries and the Petroleum Association of Japan.