Japan to continue gasoline subsidies to cap prices at 170 yen

Prime Minister Takaichi has announced the continuation of government subsidies aimed at suppressing gasoline prices to approximately 170 yen per liter. The decision follows recent data showing that, due to these measures, Japan's average regular gasoline price was 169.8 yen as of August 17, making it lower than in the United States, Europe, and other parts of Asia.

Citing uncertainty regarding oil price forecasts and the ongoing instability in the Middle East, the Prime Minister stated the goal is to “protect the lives and livelihoods of the people” and prevent disruptions to economic activity. To fund this continued support, Takaichi has instructed Minister of Economy, Trade and Industry Akazawa to coordinate with Finance Minister Katayama to secure the necessary reserve funds.

While some members of the ruling party have suggested raising the target price threshold due to fiscal concerns, the Prime Minister indicated that the government will remain flexible, monitoring price trends and considering the eventual exit strategy for these measures.