Crude oil prices are rising again as uncertainty over the Strait of Hormuz intensifies further. This price surge affects numerous industries relying heavily on petroleum products, including materials and logistics sectors. Following hostilities between the United States and Iran, Japanese companies increasingly pass costs onto consumers.
Economy, Trade and Industry Minister Ryosei Akazawa addressed these concerns during Tuesday’s press conference following the Cabinet meeting. He expressed confidence that stable supply remains achievable through the end of fiscal 2027. Specifically, Akazawa stated that Japan has already secured necessary crude oil and petroleum products.
Meanwhile, supply concerns regarding crude oil and naphtha are gradually easing through alternative procurement strategies. Japan continues sourcing the oil from the Middle East and United States, bypassing the Hormuz Strait entirely. However, concerns about rising crude oil prices themselves remain notably strong across markets.
On Tuesday, West Texas Intermediate crude oil briefly reached $81 per barrel on New York futures markets. This price represented the highest level recorded in approximately one month. Consequently, numerous Japanese companies have already announced significant price increases across various product categories.
Calbee plans raising prices on 75 items, including popular potato chips, starting in October. Similarly, Ezaki Glico announced price increases for 169 confectionery and processed food items during the same period. According to Teikoku Databank, food and beverage price increases already total nearly 15,000 items this year.
Additionally, four major food container manufacturers raised prices for trays and packaging by significant margins. These increases, implemented starting in June, could eventually pass through to consumers purchasing prepared foods. Yuki Togano from the Japan Research Institute warned that continued uncertainty will likely sustain this pricing pressure.
Furthermore, Togano cautioned that persistent the oil price increases could weigh on broader economic conditions globally. Moving forward, businesses and consumers alike must brace for continued price volatility tied to crude oil markets.
