TOKYO : The Japanese government said on Wednesday it would extend a programme offering subsidies to ease the burden of higher gasoline and other fuel prices beyond this year, while reducing the cap on the subsidies gradually.
The cap on subsidies for gasoline will be reduced by 2 yen ($0.0152) per litre every month from January to May, the industry ministry said, falling to 25 yen per litre in May from 35 yen now.
The gasoline subsidy for oil distributors has been hovering below 20 yen a litre this month to reflect falling crude oil prices amid growing concerns over economic slowdown in the United States, Europe and China.
“We plan to continue the programme after May, but details will be decided later,” an official at the ministry said.
The temporary subsidy programme was adopted in January to cushion the blow from high crude prices because of tight global supplies, later exacerbated by the Ukraine conflict, and the programme has been extended a few times.
($1 = 131.7700 yen)