Petrol in New Zealand is heading toward NZ$4 a litre. Sydney drivers paid A$2.31 last week. Singapore's premium fuel crossed S$4. And in Japan — a country that imports 97% of its oil — regular gasoline costs ¥158 a litre after subsidies. That's about A$1.63.
Less than half what most Australians are paying.
\n\nWhat triggered this
On February 28, US and Israeli forces struck Iran. Iran retaliated by effectively shutting down the Strait of Hormuz — the passage through which 20% of the world's oil supply flows. Brent crude crossed US$100 for the first time in four years, peaking at US$126. Gulf oil production dropped by over 6.7 million barrels per day.
Every oil-importing country felt the impact. But not equally.
What drivers are paying right now
| Country | Price (local/L) | Approx. AUD/L | Date | Source |
|---|---|---|---|---|
| Japan (subsidised) | ¥158.50 | ~A$1.63 | 23 Mar | GlobalPetrolPrices |
| USA | US$1.05 | ~A$1.67 | 25 Mar | AAA |
| Australia | A$2.31 | A$2.31 | 14–20 Mar | FuelRadar |
| New Zealand | NZ$3.30 | ~A$3.04 | 23 Mar | 1News |
| UK | £1.50/L | ~A$2.90 | 25 Mar | Fuel Finder UK |
| Germany | €2.09/L | ~A$3.40 | 16 Mar | fuel-prices.eu |
| Singapore (95 oct) | S$3.45 | ~A$3.70 | 25 Mar | Motorist.sg |
All prices are for regular/standard grade unless noted. Conversions at approximate late-March 2026 rates.
New Zealand economists are predicting NZ$4/litre could arrive if crude stays above US$140 — but it hasn't reached that threshold yet. In Singapore, premium 98-octane has already crossed S$4.
Japan hit its own record of ¥190.80/litre on March 16 — before the government stepped in.
Why Japan is different
Japan imports nearly all of its oil. It should be among the hardest hit. Three reasons it isn't:
Immediate subsidies. When prices spiked, the government reinstated fuel subsidies of ¥30.20/litre within four days, paid directly to wholesalers. Australia and New Zealand have no equivalent mechanism.
The gasoline tax is being abolished. Japan's ruling and opposition parties have agreed to scrap the gasoline tax surcharge by end of 2026 — a permanent reduction of ¥7–10/litre.
Strategic reserves. Japan maintains one of the world's largest petroleum reserves — over 500 million barrels. This buffers short-term supply shocks in a way that smaller countries can't match.
What this means if you're looking at Japan
For anyone in Australia paying A$2.31+, New Zealand at NZ$3.30+, or Singapore at S$3.45+, the comparison is worth considering — especially if you're already thinking about property.
Driving in rural Japan is affordable. Most rural properties require a car. At current subsidised prices, filling a 50-litre tank costs about ¥7,925 (A$82). The same tank in Sydney costs about A$115. In Auckland, roughly NZ$165.
But energy costs go beyond fuel. Japan's residential electricity rate is around ¥36/kWh — comparable to peak Australian rates. Rural Japanese houses often use LP gas (propane) instead of cheaper piped city gas. LP gas costs 1.8 to 3 times more than city gas for equivalent heating.
A family of four in a rural cold-region property should budget ¥33,000–60,000/month (A$340–620) in energy during winter — electricity, LP gas, and kerosene combined.
Insulation pays for itself. Many older akiya have little or no insulation. Upgrading insulation during renovation is the single best investment for reducing ongoing energy costs — it typically pays for itself within two to three winters.
Check the gas type before you buy. If a property has city gas access, your monthly costs could be half what they'd be on LP gas. This one factor can save over ¥50,000 per year.
The bigger picture
The Hormuz crisis has been compared to the 1970s oil shocks. Whether it resolves quickly or drags on, it's exposed how differently countries respond to the same supply disruption.
Japan — despite importing nearly all its energy — has kept pump prices at roughly half what Australia and New Zealand are charging. For people in countries where the cost of driving, heating, and simply living is spiking, the maths on a country with cheap houses, subsidised fuel, and bullet trains starts to look less like a daydream and more like a spreadsheet that works.
