Japan to Increase Oil Subsidy beyond Cap

Tokyo, May 18 (Jiji Press)--Japan's industry ministry said Wednesday that it will raise the subsidies it pays to oil wholesalers to curb fuel prices to 36.1 yen per liter from Thursday.

The increase, due to soaring crude oil prices, comes only three weeks after the government raised its subsidy cap to 35 yen per liter and decided to pay additional support equivalent to half of the excess amount.

The average retail price of regular gasoline in the country as of Monday fell 0.7 yen from a week before to 170.4 yen per liter, down for the fifth straight week, thanks to the subsidies.

Pump prices dropped in 42 of Japan's 47 prefectures. Prices stayed flat in Kochi and grew in four prefectures including Aichi.

The highest average was 181.7 yen in Nagasaki.

[Copyright The Jiji Press, Ltd.]