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ECONOMY > Energy

Japan to use subsidy program to curb gasoline prices

  • January 25, 2022
  • , Jiji Press , 1:22 a.m.
  • English Press

Tokyo, Jan. 24 (Jiji Press)–The Japanese government has decided to use its new subsidy program to curb gasoline prices for the first time, sources said Monday.

 

The average retail price of regular gasoline is set to reach 170 yen per liter for the first time in 13 years and four months, meeting criteria for activating the subsidy system, the sources said.

 

The decision will be announced as early as Tuesday, while the next weekly report on retail gasoline prices will be released Wednesday.

 

Under the program, a subsidy of 5 yen per liter will be paid to 29 oil distributors and importers, such as Eneos Holdings Inc. <5020> and Mitsubishi Corp. <8058>, until the end of March to help push down the prices of gasoline, gas oil, kerosene and fuel oil.

 

For the measure, the government secured 80 billion yen in its supplementary budget for fiscal 2021.

 

Crude oil prices are staying high on brisk demand reflecting global economic recovery from the coronavirus crisis and oil producers’ reluctance to sharply increase their output.

 

The government established the subsidy program last month in response to domestic gasoline and kerosene price spikes.

 

The average retail price of regular gasoline stood at 168.4 yen per liter as of Jan. 17.

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