Japan files criminal case against five oil firms over diesel price-fixing

Japanese authorities have launched criminal proceedings against five oil companies accused of colluding to fix diesel prices for transport and construction customers in Tokyo, in a case seen as especially serious because of diesel’s central role in moving goods, materials and people across the economy.

On April 17, Japan’s Fair Trade Commission filed a criminal accusation against the five companies on suspicion of jointly setting diesel prices for customers in the transport and construction sectors in the capital. Tokyo prosecutors filed charges against the firms on the same day, according to Japanese media reports.

The five companies named in the case are Higashinihon Usami, also known as East Japan Usami, ENEOS Wing, Enex Fleet, Kitaseki and Kyoei Oil.

Another company, Taiyo Mining Oil, also known as Taiyo Koyu, was not criminally indicted after admitting wrongdoing and providing information to the authorities under Japan’s leniency programme, which offers reduced penalties or protection for the first cartel participant to cooperate.

According to the allegations, representatives from six companies met in Tokyo to discuss diesel sales prices for transport and construction firms in the city. Together, the six companies are said to account for more than half of that market.

The case has drawn close attention because diesel is a key fuel for trucks, trains and ships. At a time when crude oil prices remain elevated and Middle East tensions have raised uncertainty over oil supply, any collusion on diesel prices could sharply increase costs for transport and construction businesses and, in turn, add pressure to consumer living costs.