Japan Govt to Raise Oil Subsidy Ceiling to 35 Yen

Politics Economy

Tokyo, April 22 (Jiji Press)--The Japanese government plans to raise the cap on its subsidies paid to oil wholesalers with an aim to curb gasoline and other fuel prices to 35 yen per liter from 25 yen at present, it was learned Friday.

The plan is included in a draft package of emergency measures to cope with price surges in the country, which was compiled the same day. The government will decide on the package as early as Tuesday.

With the hike in the subsidy ceiling, the government will aim to curb the national average price of regular gasoline at service stations at 168 yen per liter, down from the current target of 172 yen. The subsidy program will be kept in place until the end of September.

Also, the government plans to create a system to provide aid covering half of the amount that exceeds the 35-yen cap.

Around 300 billion yen from the fiscal 2022 government budget reserves will be put up to finance the subsidy program in May. Over 1 trillion yen needed to implement the program in June-September will be covered by a supplementary budget the government plans to submit to the ongoing parliamentary session.

[Copyright The Jiji Press, Ltd.]

Jiji Press