Tokyo Electric to Pay Record Price for Fuel Oil From Nippon Oil

Oct. 29 (Bloomberg) — Tokyo Electric Power Co., Oji Paper Co. and other Japanese fuel oil users will pay Nippon Oil Corp. record prices in the three months to December.

Prices of low-sulfur fuel oil sold to Tokyo Electric and high-sulfur fuel oil supplied to Oji Paper will rise as much as 9.1 percent in the quarter, according to a notice sent by Nippon Oil to customers. The prices are preliminary and may be revised to adjust for changes in production costs.


Nippon Oil has been setting the benchmark price for fuel oil in Japan since 1970, and producers including Idemitsu Kosan Co. may follow the country’s biggest refiner in boosting prices.

Tokyo Electric, Japan’s biggest consumer of low-sulfur fuel oil, will pay Nippon Oil a record 67,520 yen a kiloliter ($612 a metric ton), 2.4 percent more than in the three months ended September.

Oji Paper, the country’s biggest high-sulfur fuel oil user, will pay an initial price of 62,150 yen a ton, up 9.1 percent from the previous quarter.

Bloomberg