Japan PM Takaichi Hints at Reducing Gasoline Subsidies

Tokyo, June 4 (Jiji Press)–Japanese Prime Minister Sanae Takaichi on Thursday hinted at reducing government subsidies aimed at keeping gasoline prices at around 170 yen per liter. During discussions on the government’s draft fiscal 2026 supplementary budget at the House of Representatives Budget Committee, Takaichi said, “We will flexibly consider the matter, including gas prices.” Junya Ogawa, head of the opposition Centrist Reform Alliance, urged the government to consider public intervention for the management of the distribution of naphtha, a key material for oil-related products, amid growing concerns over supply disruptions. But Takaichi sounded negative, saying that the country as a whole has “secured the necessary amount of naphtha.” She added, “As of this moment, we are not thinking of introducing restrictive measures.” On the proposed two-year consumption tax cut for food, Takaichi said that the multiparty National Council on Social Security is currently discussing the tax rate and the timing of implementing the measure, stopping short of mentioning the details. While saying, “I won’t jump to conclusions,” Takaichi called on lawmakers to focus on ways to realize the tax reduction, rather than trying to find reasons not to introduce the measure. The 3,113.5-billion-yen draft supplementary budget, mainly intended to set up new reserve funds for measures in response to Middle East tensions, is expected to be approved by the Budget Committee of the lower chamber of the country’s parliament by a majority vote later Thursday, with support from the ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party. The Democratic Party for the People, an opposition force, is now considering voting for the extra budget. After the committee’s approval, the draft budget will likely clear the full Lower House in a vote at a plenary meeting within the day. END [Copyright The Jiji Press, Ltd.]