Prime Minister Sanae Takaichi announced on October 29 that Japan will begin reducing its gasoline subsidy from December, according to 日本経済新聞. Under the plan, the benchmark price that the subsidy holds down will be raised in stages by roughly 5 yen per liter each month.
The subsidy currently exceeds 50 yen per liter and keeps the benchmark price at around 170 yen. Speaking to reporters at the Prime Minister's Office, Takaichi said the government would proceed on the basis of lifting the price by 5 yen per month through the spring, the newspaper reported.
She framed the decision as a matter of spending public money carefully, saying the tax contributions of citizens are precious and that funds should be directed wisely to where they are needed.
The reporting places the move in the context of political pressure to trim the program. 西日本新聞me reported that the Liberal Democratic Party's policy research council chairman, Kobayashi, delivered a proposal to Takaichi on October 28 calling for the subsidy to be scaled back, and that she said she would consider it. Separately, TBS NEWS DIG reported that cumulative spending on fuel oil subsidies has topped 10 trillion yen, with a cabinet decision expected soon on disbursing more from this fiscal year's reserve funds.
What to watch next is whether the cabinet formally approves the additional reserve-fund spending, and how the monthly 5 yen step-up plays out at the pump through spring.
