Japan's crude oil import price hit a record high in yen terms in April, according to Ministry of Finance data, driven by soaring crude prices amid the Middle East conflict and the weak yen.
The customs-cleared import price for crude oil stood at JPY101,389 ($637.8) per kilolitre, the highest since comparable records began in 1979. The previous record was JPY99,600 in July 2022, following Russia's invasion of Ukraine, according to a ministry official.
In dollar terms, the customs-cleared import price was $101.2 per barrel, the 57th highest on record.
Japan's crude import price, known as the Japan Crude Cocktail (JCC), is based on customs-cleared CIF (cost, insurance and freight) prices and reflects global crude price movements with a lag of about one month due to shipping times.
Higher JCC price raise the cost of importing crude oil and liquefied natural gas which is a main fuel used for thermal power generation, and lead directly to soaring electricity prices.
Crude oil import volumes plunged 64 per cent from a year earlier, marking the steepest drop since 1980, another finance ministry official said.
By region, crude imports from the Middle East fell by 67.2 per cent year-on-year to 3.84 million kilolitres. In contrast, crude oil imports from the United States rose by 38.8 per cent.
In value terms, crude imports declined 49.9 per cent, the largest drop since November 2020 during the Covid-19 pandemic.
Before the US-Israeli war on Iran blocked most oil transport through the strait, Japan relied on the Middle East for about 95 per cent of its crude imports.
(Reporting by Yuka Obayashi and Takaya Yamaguchi; Editing by Tasim Zahid)