Starting December 12, 2024, the Japanese government will begin gradually reducing gasoline subsidies, resulting in a 19 yen per liter increase in gas station prices. The government has been subsidizing gasoline at a rate of approximately 1 yen per liter, but the reduction will lead to higher fuel costs for consumers. While officials aimed to limit the impact on households and the economy, the decision has sparked widespread criticism.
From December 12, the difference between the standard gasoline price and the high-rate subsidy trigger price will be reduced from 19% to 60%. This change is expected to drive gasoline prices up by an average of 30 yen per liter. Moreover, the government plans to eliminate the subsidy entirely by January 5, 2025, which could push prices even higher, potentially exceeding 1 yen per liter.
The subsidy cuts are having a significant effect on consumers, with many voicing strong complaints, particularly as the holiday season approaches. On December 18, several customers rushed to fill their tanks before the price increase took effect. One consumer expressed frustration, stating, “It is too much to reduce subsidies at the end of the year.”
Others criticized the government’s spending priorities, urging officials to focus on maintaining gasoline subsidies rather than funding what they consider unnecessary expenditures. As the financial strain of rising fuel prices increases for households, public discontent is growing, and it appears that opposition to the government’s policy will continue.
Yuichiro Tamaki, a lawmaker from the Democratic Party of Japan, has been particularly vocal in his opposition. Tamaki took to social media to express concern that the reduction in subsidies would push gasoline prices to 180 yen per liter. He warned of the potential for rising logistics costs and worsening inflation. Tamaki criticized the government’s decision, calling for a swift gasoline tax cut to help ease the burden on consumers.
Additionally, Tamaki argued for raising the tax ceiling from 103 million yen to 178 million yen and for eliminating the temporary gasoline tax rate next year. He emphasized the need for practical measures to mitigate the impact of rising gasoline prices on both households and industries.
As the government prepares to phase out subsidies, the debate over the rising cost of fuel is expected to intensify, with growing pressure on policymakers to address consumer concerns.
Related Topics:
- Which is Better: Unleaded or Premium Gasoline for Motorcycles?
- What Is Tier 1 Gasoline?
- What is Blended Gasoline?