Rising operating costs and global inflation blamed for higher prices at 96 of country’s 161 refuelling stops
Japanese industrial gases company Iwatani warned today that it will increase the price of hydrogen fuel at its 53 H2 refuelling stations (HRSs) in Japan by about 36% from 1 June — to ¥1,650 ($10.67) per kilogram from the current ¥1,210/kg.
Earlier this month, Japan’s largest oil company, Eneos, raised the price of H2 fuel at its 43 HRSs in Japan by 33% to ¥2,200/kg.
This means that 96 of the country’s 161 HRSs will see their fuel costs surge by a third — further discouraging the take-up of hydrogen fuel-cell electric vehicles (FCEVs).
Only 424 FCEVs were sold in Japan in 2023, a 49.9% fall compared to the 846 sales in 2022, and an 82.8% collapse compared to the 2,464 sold in 2021.
Iwatani said it is raising prices for the first ever at its H2 pumps due to their deteriorating profitability amid rising energy costs. Most hydrogen supplied to pumps in Japan is the grey variety made from unabated natural gas.
Eneos told customers in February that it would increase prices on 1 April due to “rising operating costs and equipment maintenance costs due to global inflation”.
Nevertheless, the cost of hydrogen fuel at Japanese pumps — even after the price hikes — is still far lower than in Europe or the US.
Prices in California (the US’s only FCEV market) rose as high as $36/kg last year, while in Germany — Europe’s largest market — the standard price is €15.75 ($16.76) per kilo.
Japan has a target of getting 800,000 FCEVs on its roads by 2030, up from about 8,000 today.
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