TOKYO — As winter approaches, soaring kerosene prices are casting a heavy shadow over cold regions like Hokkaido. Driven by rising international petroleum product prices amid the deteriorating Middle East situation and growing fears of domestic supply disruptions, the issue has quickly become a pressing socio-economic concern.

While the Japanese government has introduced emergency support measures—including a direct purchasing system for agricultural and medical sectors—fears persist that maintaining a stable supply will become increasingly difficult as the peak heating season arrives.

Hokkaido Hit Hard by Steep Price Hikes

Addressing the crisis earlier this month, Economy, Trade and Industry Minister Ryosei Akazawa stressed that ensuring a stable supply of this essential fuel is a top priority. While assuring the public that sufficient domestic kerosene supplies have been secured, Akazawa pledged to accelerate the rebuilding of distribution networks to address regional supply disparities.

According to Ministry of Trade data released on October 13, the nationwide average retail price for kerosene stood at ¥142.40 per liter. Despite a ¥43 government subsidy, prices remain about ¥20 higher than during the same period last year.

The impact has been particularly severe in Hokkaido, where temperatures drop early:

On October 1, Co-op Sapporo raised its home delivery price by ¥15 per liter across the prefecture.
In the Sapporo area, the price reached ¥159 per liter—roughly 20% higher than last year.
On October 13, the Hokkaido Coop Union submitted an urgent request to the trade ministry’s regional bureau for effective countermeasures. A union representative voiced deep concern, stating, "It’s a matter of choosing between turning on the heat or curbing food expenses; it’s a matter of life and death."
Prof. Masatoshi Kojima of Momoyama Gakuin University, an expert on oil distribution, noted that Hokkaido’s particularly high ratio of imported products has accelerated the rapid price surge.

Government Measures and Broader Economic Risks

To mitigate the crisis, the Ministry of Economy, Trade and Industry has urged primary distributors and wholesalers to maintain sales and orders at October levels from the previous year. Furthermore, the government has:

Established a direct-purchasing system allowing agricultural and medical operators to bypass standard channels and buy directly from primary distributors during distribution disruptions.
Implemented additional financial backing by subsidizing the price difference when importing relatively expensive kerosene to actively secure supply levels.
Experts warn that the fallout could extend beyond household heating. Because kerosene is heavily used to warm agricultural greenhouses, a prolonged price surge could drive up agricultural production costs and ultimately push food prices higher.

Although distribution disruptions previously affected naphtha—a plastic manufacturing raw material—in February due to panic buying (as Japan imports roughly 40% of its naphtha), the situation for kerosene is structurally different. More than 90% of domestic kerosene consumption is covered by domestic refining.

A government official sought to calm public anxiety, stating, "We have enough kerosene domestically, and concerns are getting ahead of the actual situation. We want to reassure the public through our measures."

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