Japan to raise gasoline subsidy to Y5 a litre from Y3.7, hitting cap

TOKYO (Reuters) - Japan will raise its gasoline subsidy for oil distributors to 5 yen a litre for the week starting on Thursday, the country's industry ministry said on Wednesday in its website.

A government source told Reuters earlier this week that Japan will hike the subsidy to 5 yen for the week, hitting a cap for the temporary scheme to blunt a sharp rise in fuel prices.

The government sets the subsidy amount every week if the retail gasoline price exceeds the threshold of 170 yen under the programme implemented on Jan. 27.

(Reporting by Yuka Obayashi; Editing by Christopher Cushing)

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