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Japan Raises Gasoline Subsidy to ¥25.10 per Liter Ahead of Tax Repeal

The phased support aims to keep pump costs steady when the provisional levy ends December 31.

Overview

  • The government will add ¥5.10 per liter from December 11, taking the subsidy to ¥25.10 and matching the provisional gasoline tax rate.
  • The step completes a transition that has increased support roughly every two weeks since early November to avoid abrupt price swings.
  • Payments go to oil wholesalers, and retail pump prices typically reflect changes after several days to about a week.
  • METI reports the national average for regular gasoline at ¥163.70 per liter as of December 8, a five‑week slide to the lowest level in four years and two months.
  • Officials plan to end the subsidy as the provisional tax is abolished on December 31, with little net change expected at stations before and after the shift.