Japan Govt to Gradually Increase Subsidies to Oil Wholesalers

Tokyo, Nov. 7 (Jiji Press)–Japan’s industry ministry said Friday it will gradually increase subsidies to oil wholesalers to prevent turmoil and radical fluctuations in gasoline prices after the planned abolition of the provisional gasoline tax surcharge of 25.1 yen per liter. The ministry plans to raise the subsidies from 10 yen per liter to 15 yen on Thursday, adding 5 yen on Nov. 27 and raising the amount to 25.1 yen, equivalent to the tax surcharge, on Dec. 11. The subsidies have been provided to mitigate soaring gasoline prices. Retail prices are expected to decline a few days or a week after the subsidy increases. On Wednesday, the ruling and opposition parties agreed to repeal the tax surcharge and subsidies at the end of December. Due to concerns about consumer hesitation to buy gasoline before the changes, the ministry has asked oil wholesalers to strengthen their delivery capabilities and consumers to refuel frequently. Subsidies for diesel oil will also go up, from 10 yen per liter to 15 yen on Thursday, and to 17.1 yen on Nov. 27, following the planned abolition of the provisional tax surcharge on the diesel oil delivery tax of 17.1 yen per liter. The tax surcharge will be repealed at the March 31 end of the current fiscal year. “We will mull financing support for small- and mid-sized gas stations sensitive to the abolition of the tax surcharges,” industry minister Ryosei Akazawa told a press conference. END [Copyright The Jiji Press, Ltd.]