Japan's Ruling LDP Proposes Gradual Reduction of Fuel Subsidies

Tokyo, Oct. 26 (Jiji Press)--Japan's ruling Liberal Democratic Party on Monday compiled a proposal for the government to gradually cut subsidies for gasoline and other fuels.

The party said that the government should gradually reduce the subsidies mainly by raising the benchmark national average retail price of regular gasoline from around 170 yen per liter by about 5 yen a month starting in December. The subsidy currently amounts to about 43 yen per liter.

Concerns over the fiscal burden have led to calls for an exit strategy for the subsidy program. On Friday, Prime Minister Sanae Takaichi ordered industry minister Ryosei Akazawa to consider reviewing the subsidy program.

The proposal, which the LDP plans to submit to the government soon, stated that gasoline prices in Japan are lower than those in Europe and the United States and that the government should seek a smooth transition of the subsidy program to a sustainable one.

Meanwhile, the party called for the resumption of aid for electricity and gas bills, given higher energy demand in winter. The LDP also included measures to curb rising kerosene prices.

[Copyright The Jiji Press, Ltd.]