Japan Electricity Prices Forecast to Soar 40% Amid LNG Price Surge
Japan's reliance on imported liquefied natural gas (LNG) is set to drive up wholesale electricity prices by nearly 40% in the second half of 2026, according to a forecast from the International Energy Agency. The increase reflects higher LNG prices due to turmoil in the Middle East.
Natural gas imports are a significant component of Japan's energy mix, and Asian LNG prices tend to rise alongside crude oil prices. This leaves Japan more vulnerable than other economies that have diversified their energy sources.
The forecast is based on current market trends and does not account for potential changes in global events or policy decisions.