Prime Minister Takaichi said Tuesday that Japan will continue gasoline subsidies to keep regular fuel prices around 170 yen per liter [1].
The decision aims to shield Japanese consumers from the economic impact of rising crude oil prices caused by instability in the Middle East.
Takaichi said the government will maintain the subsidy policy that has been in place since March [1]. The measure is designed to prevent a sharp increase in costs for households and businesses that rely on road transport.
Market conditions have put pressure on the government's pricing targets. Wholesale prices from oil distributors rose by 26 yen starting March 12 [3]. Without government intervention, some forecasts suggest retail prices could exceed 180 yen per liter [4].
During a press conference, Takaichi said the government would continue the subsidy policy that has been in place since March to keep regular gasoline at around 170 yen per liter [1].
The policy reflects a broader effort to stabilize the cost of living amid global energy volatility. By capping the price of regular gasoline, the administration seeks to prevent fuel inflation from triggering wider price hikes across the supply chain.
“Japan will continue gasoline subsidies to keep regular fuel prices around 170 yen per liter.”
The extension of these subsidies indicates that the Japanese government views energy price stability as a critical priority for social stability. However, the gap between the 170-yen target and the potential 180-yen market price suggests that the cost of these subsidies may increase as the government fights against upward global oil trends.
