Tokyo Electric Power Co., Oji Paper Co. and other Japanese fuel oil users will pay Nippon Oil Corp. record prices in the July to September period.

Prices of low-sulfur fuel oil sold to Tokyo Electric and high-sulfur fuel oil supplied to Oji Paper will rise 14 percent in the fiscal second quarter, according to a notice sent by Nippon Oil to customers late yesterday. The prices are preliminary and may be revised to adjust for changes in production costs.

Nippon Oil has set the benchmark for fuel oil in Japan since 1970, and other producers including Idemitsu Kosan Co. may follow the country's biggest refiner in increasing prices.

Tokyo Electric, Japan's biggest consumer of low-sulfur fuel oil, will pay Nippon Oil a record 65,830 yen ($485.5) a metric ton, 14 percent more than in the three months ended June.

Oji Paper, the country's biggest high-sulfur fuel oil user, will pay a preliminary price of 59,650 yen a ton.

Nippon Oil sets preliminary prices for the two main buyers of the fuel in the first month of each quarter and final prices are agreed subsequently. The prices for the July-September quarter reflect changes in crude oil costs and prices in Japan's tax-free bunker fuel oil market for the June-August period.

Dubai crude oil prices have risen 12 percent since June 1 to $71.14 a barrel, increasing the cost of producing fuel oil.

Low-sulfur fuel oil sold to Tokyo Electric, Asia's biggest power producer, has a maximum 0.3 percent sulfur content. High- sulfur fuel oil sold to Oji Paper has a maximum 3 percent sulfur content.