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Japan Plans to Start Reducing Gasoline Subsidies from Dece

TOKYO, Oct 29 (Reuters) - Japanese Prime Minister Sanae Takaichi said on Thursday ​the government plans to raise its target ‌gasoline price at the pump by 5 yen per litre each month from December towards next ​spring to keep in check growing ​expenses for fuel oil subsidies.

The government has ⁠been providing oil refiners with subsidies to ​keep the retail gasoline price at around ​170 yen ($1.08) per litre.

・Reuters reported last week that the government was considering scaling back gasoline subsidies from as early ​as December amid concerns that funding ​for the measures could eventually run short.

・Under the current ‌scheme, ⁠gasoline subsidies are costing the government more than 10 billion yen a day, Takaichi said.

・The government will keep a close eye on ​moves in ​crude oil ⁠prices in revising its gasoline target price, the prime minister said.

・Takaichi ​also said the government will deploy ​subsidies ⁠aimed at curbing utility and gas bills from December through February, reducing about 7,000 yen ⁠in ​financial burden for a typical ​household.

($1 = 157.7600 yen)

Reporting by Leika Kihara, Mariko Katsumura, Kiyoshi ​Takenaka; Editing by Ros Russell and Chizu Nomiyama

Source: Reuters


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