12 hours ago
Japan plans fuel subsidies amid Israel-Iran oil supply threat
Japan's government says it will introduce fuel subsidies to counter possible spikes in prices, should the fighting between Israel and Iran disrupt crude oil supply.
The government says it will subsidize oil wholesalers to keep the pump price of regular gasoline around 175 yen, or 1.2 dollars, a liter, even if crude prices jump.
It will provide the same level of subsidy for light oil. The support for kerosene and heavy oil will be roughly half of the gasoline subsidy, while aviation fuel will be about 40 percent.
The government says the program will kick in on June 26 and last for some two months. It will be funded from the existing budget.
The support comes on top of a fixed subsidy to oil wholesalers already in place.
That program began last month to stem rising gasoline prices and the subsidy has gradually increased to 10 yen per liter.
Japan's Industry Minister Muto Yoji stressed the subsidies will be temporary.
"Considering decarbonization efforts, this support program for fuel is not something that can continue indefinitely," he said.
Muto said the subsidies are to help support the daily lives of citizens through July and August, when gasoline demand typically increases.
