The news source reported that the retail price of regular fuel in Japan has fallen by 15% to its lowest level in a year, following the expiry of the $0.25 fuel charge imposed by the country’s government to fund road construction.
The Petroleum Association of Japan noted that the reinstatement of the fuel tax could trigger fuel stockpiling before the price increase takes effect.
The association has also requested the Japanese government to reimburse gasoline station operators for losses suffered after the tax expiry, as they had already paid the surcharge on fuel being sold at reduced prices.
Japanese refiners and retailers are also likely to pass on the increased costs of oil imports to end customers, beginning in May 2008.
