Half of It Isn't Even Fuel

Miko, Onii-chan said gas went up like 30 yen!

…30 yen, nya? It was around 160 last week, nya.

Almost 190 today. That’s 1,200 yen — about $8 — extra on a full tank!

…Fill up four times a month and that’s 4,800 yen — about $30 just gone, nya.

You converted that to monthly so fast… that’s our budget keeper for ya.

…Obviously, nya. It’s not like Miko tracks it because she cares or anything.

So I looked it up. The cause? It’s from the other side of the planet.

…The other side, nya?

So in late February, the US and Israel launched a strike on Iran — and Iran hit back by blocking ships from passing through the Strait of Hormuz.

…What is the Strait of Hormuz, nya?

It’s the bottleneck where Middle Eastern oil gets out to the world. About one-fifth of the world’s oil supply passes through there. And now it’s basically blocked.

…Like shutting off the main valve, nya.

Crude oil futures shot past $111 per barrel. First time over $100 in about three and a half years (ﾟ∀ﾟ)

And today — March 12 — Japan’s oil wholesalers raised their prices by about 26 yen per liter all at once. That’s why Onii-chan saw 190 on the sign today.

…If wholesale goes up 26, the pump goes up 26, nya.

The forecast says next week’s national average could go over 180 yen. Some are even saying 200 is possible.

I thought maybe it was just Onii-chan’s station. So I checked.

…Nya.

The national average last week was 161.8 yen — four weeks of increases in a row. The most expensive prefecture was Kagoshima at 167.6, cheapest was Miyagi at 152.4. That’s a 15 yen gap within the same country.

…15 yen difference within Japan, nya.

But the 26-yen wholesale hike hits everyone equally, so it’s gonna jump everywhere.

Here’s the wild part, Miko. It’s not just Japan.

…Nya?

The US got hit at the same time. Gas was about $3.10 per gallon before the Iran situation. Now it’s $3.58. That’s 16% up in one week.

…Same cause, same timing, nya.

Crude oil is a global market. When Hormuz gets blocked, everyone feels it. There’s no version where Japan gets hit but America doesn’t.

Normally though, American gas is way cheaper. About 149 yen per liter — their taxes are less than half of Japan’s, and they produce their own crude.

Europe is the opposite though. The Netherlands? 354 yen per liter. More than double Japan (≧∇≦)

…354 yen, nya. Over twice as much, nya.

They tax it high on purpose — environmental policy to reduce car usage. The world average is about 213 yen. Japan at 161 was actually below average… until this week.

…Netsuki. What actually goes into the price of gas, nya?

Right?! I looked into that too.

Gasoline tax: 53.8 yen per liter. Fixed — doesn’t change no matter what crude does. Plus petroleum tax at 2.8 yen. Together that’s 56.6 yen in taxes.

…Over a third of 161 yen is tax, nya.

And then there’s a 10% consumption tax on the entire 161 yen. So the tax itself gets taxed.

…Tax on tax, nya. Interesting structure, nya.

Fun fact: 25.1 yen of that gasoline tax was supposed to be “temporary” — introduced in 1974 for “just 3 years” to fund road construction. It got extended over and over for 50+ years.

…3 years became 50, nya.

There’s finally talk of getting rid of it. But with oil prices this high, even if the tax drops, the price barely moves.

Oh, and y’know how stations all have different prices?

…Different wholesale costs, nya.

That’s part of it, but get this — stations scout their competitors’ signs every single day.

…Reconnaissance, nya.

If the rival drops 1 yen, you drop 1 yen. But drop too much and you’re losing money. And here’s the thing — a station only makes a few yen profit per liter.

…A few yen, nya.

The real money comes from car washes, inspections, oil changes. Gas is just the sign that gets customers in the door.

…The gas station’s main product isn’t gas, nya.

Miko. One more thing I didn’t know.

…Nya.

Gasoline is naturally completely colorless. They dye it orange so people don’t mix it up with kerosene or diesel. Wait what?!

…Even the color is added, nya.

A third of the price is taxes. The color is artificial. Today’s 30-yen jump came from a strait on the other side of the world. And the number on the sign was set by scouting the station across the street.

What I thought was just “the price of gas” turned out to be layers and layers of different things all stacked together.

…Nya.

I get why Onii-chan sighed now.

…The government says they’ll release oil reserves, nya. Trying to keep it around 170 yen, nya.

170… that’s still not back to last week’s 161, is it?

…Not until Hormuz opens, nya.

…A strait on the far side of the planet is directly connected to Onii-chan’s wallet.

…And to Miko’s household ledger, nya.