Japan’s Electricity Prices Surge 25% as LNG and Coal Costs Soar

Tsvetana Paraskova

What I Cover Tsvetana Paraskova is an energy and products reporter

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By Tsvetana Paraskova- Oct 19, 2026, 5:30 AM CDT

Japan’s typical power costs leapt by over 25%at the start of this week from the previous week amidst skyrocketing LNG and greater coal costs.

The across the country power rate increased by over 25%week-to-week to$0.19(31.15 Japanese yen) per kilowatt-hour(kWh)on Monday, Bloomberg reportedmentioning information from Japan Electric Power Exchange.

Japan, among the world’s greatest LNG importers, this summer season lowered gas-fired generation in favor of coal as the cost of melted gas stayed raised.

Japan has actually been burning more coal and less gas for power generation because the war in the Middle East began, and it is not the only one. All Asian nations have actually made the switch from gas to coal on cost and accessibility premises.

Rising oil costs have actually led to a substantial boost in Japan’s import expense for oil and LNG.

LNG costs rose in Asia to a four-year high as extremely couple of freights handle to leave the Strait of Hormuz while competitors with Europe for winter season supply is magnifying.

The typical area LNG cost for shipment into north-east Asia in December was examined at $29.30 per million British thermal systems (MMBtu) at the end of recently. This was the greatest area LNG cost for Asia considering that December 2022, and greatly greater compared to $26.50 per MMBtu examined in the previous week.

As an outcome, Japan’s gas-fueled power generation is the most costly in years.

The switch to coal, for its part, has likewise had its expense difficulties this year. Increased need in Asia amidst lowered supply from the leading thermal coal exporter, Indonesia, is increasing coal costs, too. The worldwide standard for coal rates, the Newcastle futures, have actually leapt by 30% compared to pre-war levels.

Power rates in Japan have actually likewise leapt this month due to set up upkeep at some power-generating centers ahead of winter season.

By Tsvetana Paraskova for Oilprice.com

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