Japan's oil prices have plunged from record highs after the government injected a massive budget subsidy, aiming to control the energy price crisis caused by the Middle East war.
Gasoline prices in Japan are set to drop significantly after the government rushed to inject subsidies to curb the sharp price surge caused by the impact of the Iran war.
Data from Japan's Ministry of Economy, Trade and Industry shows the average retail price of gasoline has fallen to 177.70 yen per liter from a record high of 190.80 yen the previous week, marking the first decline in six weeks.
This decline follows the government's reinstatement of oil price subsidies, aiming to keep prices near 170 yen per liter amid concerns that rising living costs would affect people nationwide.
This week, the government provided subsidies of up to 30.20 yen per liter and plans to increase this to 48.10 yen per liter next week—the highest since the program started in 2022—reflecting a heavy budget burden.
Meanwhile, the Cabinet approved the use of 794.8 billion yen in reserve funds to support energy prices, hoping to mitigate the impact of continuously rising oil costs.
Reports also indicate that oil prices have dropped in 46 out of 47 prefectures across the country, showing clear results from government measures.
Besides gasoline, diesel prices have also fallen by 12.40 yen to 166 yen per liter, while kerosene for household use decreased by 154 yen to 2,620 yen per 18 liters.
However, officials have not specified when the subsidy measures will end, amid concerns that stopping them could trigger a sharp rebound in oil prices and further strain household expenses.
Source:Japantoday
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