Japan to Raise Oil Subsidy Cap to 25 Yen: Kishida

Politics Economy

Tokyo, March 3 (Jiji Press)--Japanese Prime Minister Fumio Kishida said Thursday that the government will 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 on March 10.

The government will include the higher cap in an additional set of measures it is scheduled to adopt Friday to address soaring oil prices as Russia's invasion of Ukraine sent crude oil futures above 110 dollars per barrel.

"We'll make negative effects on the people's livelihood and corporate activities as small as possible and deliver support promptly," Kishida said at a press conference.

The upper limit on subsidies will be raised to keep retail prices of regular gasoline around 172 yen per liter, even if the actual price rises to 197 yen.

The government will finance the extra costs by tapping over 360 billion yen out of its budget reserves set aside for fiscal 2021, which ends this month.

[Copyright The Jiji Press, Ltd.]

Jiji Press