Japan's government has restarted gasoline subsidies in an effort to curb rising pump prices, setting the support at 30.20 yen per liter of regular gasoline through Wednesday and targeting a national average retail price of around 170 yen [1]. The subsidy program also extends to diesel and heavy oil, aiming to ease costs for businesses, farmers, foresters, and the fishing industry [1]. The government plans to adjust the subsidy weekly, basing changes on forecasts for the following week's retail prices, which are influenced by fluctuations in crude oil prices [1].
As of Monday, the regular gasoline price reached an all-time high of 190.80 yen per liter, driven by surging crude oil prices following the U.S.-Israeli attack on Iran [1]. The latest subsidy rate was determined based on projections that the price could rise further to 200.20 yen next week [1]. According to the economy ministry, the impact of gasoline price declines will differ by station due to presubsidy inventories, and there is no specified end date for the subsidy program [1].
CONCLUSION
Japan's decision to resume gasoline subsidies is a direct response to record-high pump prices and anticipated further increases. The move is expected to provide immediate relief to consumers and key industries, though the duration and ultimate effectiveness of the subsidies remain uncertain.