Prime Minister Shigeru Ishiba announced on Tuesday that Japan will launch a new program on May 22 to reduce gasoline prices by ¥10 (about $0.07) per liter. The move is aimed at easing the impact of U.S. President Donald Trump’s tariffs and rising inflation.
Ishiba explained that the price reduction would be a fixed amount to counter rising fuel costs. After a meeting with Industry Minister Yoji Muto at the Prime Minister’s Office, Ishiba shared the details of the program. Gasoline and light oil prices will be cut by ¥10, while heavy oil and kerosene will see a ¥5 reduction. Aircraft fuel prices will drop by ¥4.
Currently, the government supports oil wholesalers with subsidies to maintain gasoline prices at around ¥185 per liter.
Additionally, the government plans to resume subsidies for electricity and gas bills this summer to help manage the impact of extreme heat. These subsidies were previously discontinued in March. Ishiba stated that the government will decide on the details of these subsidies by the end of May, after evaluating trends in fuel and electricity prices.
The funding for these measures will come from reserve funds in Japan’s fiscal 2025 budget, avoiding the need for a supplementary budget before the House of Councilors election this summer.
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