Japan to Raise Oil Subsidy Cap to 25 Yen
Newsfrom JapanPolitics Economy
Tokyo, March 2 (Jiji Press)--The Japanese government is planning to raise the limit of its subsidies paid to oil wholesalers to curb gasoline prices to 25 yen per liter from the current 5 yen, effective March 10, sources familiar with the matter said Wednesday.
The government is also considering keeping the subsidies in place beyond March, the sources said.
They said that the government will finance the subsidy program by tapping about 350 billion yen out of its 450-billion-yen budget reserves set aside for fiscal 2021, which ends this month.
The average price of regular gasoline in Japan stood at a 13-year high of 172.8 yen per liter as of Monday, according to the industry ministry. The government will aim to keep gasoline prices to around 172 yen by raising the subsidy cap.
The government had been considering raising the upper limit in stages, to 10 yen this month. But it now plans to raise the limit drastically amid concerns that gasoline prices will climb further due to Russia's invasion of Ukraine.
[Copyright The Jiji Press, Ltd.]