Japan to scale back gasoline subsidies from December

· Energy · Japan

Japan plans to gradually scale back gasoline subsidies from December into early spring, Prime Minister Sanae Takaichi said. Support for electricity and gas bills, which was also provided from January through March this year, will be brought forward and begin in December. The change shifts the balance of household energy relief away from fuels toward utility bills as the government adjusts support amid high energy prices.

Why it matters:Japan's subsidy shift affects household budgets and inflation at a time when energy costs are politically sensitive worldwide.

Key points

  • Gasoline subsidies will be reduced gradually from December.
  • Electricity and gas bill support will begin in December instead.
  • The measure was announced by Prime Minister Sanae Takaichi.

Sources (original reporting)

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