Oil Distributors Admit Antimonopoly Diesel Cartel

On September 3, five Japanese oil distributors, including Higashinihon Usami and ENEOS Wing, acknowledged charges of antitrust violations in a Tokyo District Court trial. The companies admitted to forming a cartel to coordinate diesel fuel prices, with prosecutors alleging they met monthly to discuss price adjustments and planned increases.

The companies agreed on a price target that would increase diesel prices by 2 yen per liter. The case comes as typhoon No. 24, named Krovanh, approached Japan, causing strong winds, heavy rain, and high waves in Okinawa and the Amami Islands. Meanwhile, night trains are becoming increasingly popular in Japan, with new services and even overnight Shinkansen trains being introduced.

Concerns over bear sightings and attacks have also grown, with experts warning that autumn is the most dangerous season for human-bear encounters. On September 2, Haneda Airport introduced a new boarding facility at Terminal 1 and moved the checked-baggage deadline for domestic flights to 30 minutes before departure. In the stock market, Tokyo stocks ended mixed on September 3, with the Nikkei 225 down 1.16% and TOPIX up 0.5%.

The decline in Tokyo stocks was attributed to uncertainty over interest rates and currencies, as well as increased oil prices and bond yields following U.S. strikes on Iran. Interest rates on Japanese government bonds for individual investors rose to record-high levels in September, with the 10-year floating-rate bond reaching 1.95%.

U.S. Treasury Secretary Scott Bessent urged Japan to intervene in the market and support monetary policy measures to address the yen's depreciation, which is contributing to inflationary pressures. On September 1, Japan's benchmark long-term interest rate reached 3%, its highest level since 1996, as government bond selling accelerated due to expectations of a possible Bank of Japan rate hike, rising U.S. yields, and concerns over Japan's fiscal outlook.