Japan PM Takaichi Hints at Reducing Gasoline Subsidies

Tokyo, June 4 (Jiji Press)--Japanese Prime Minister Sanae Takaichi on Thursday hinted at reducing government subsidies aimed at keeping gasoline prices at around 170 yen per liter.

During discussions on the government's draft fiscal 2026 supplementary budget at the House of Representatives Budget Committee, Takaichi said, "We will flexibly consider the matter, including gas prices."

Junya Ogawa, head of the opposition Centrist Reform Alliance, urged the government to consider public intervention for the management of the distribution of naphtha, a key material for oil-related products, amid growing concerns over supply disruptions.

But Takaichi sounded negative, saying that the country as a whole has "secured the necessary amount of naphtha." She added, "As of this moment, we are not thinking of introducing restrictive measures."

On the proposed two-year consumption tax cut for food, Takaichi said that the multiparty National Council on Social Security is currently discussing the tax rate and the timing of implementing the measure, stopping short of mentioning the details.

[Copyright The Jiji Press, Ltd.]