The average retail gasoline price, currently about ¥175 per liter, is expected to rise by over ¥5, as the government has announced it will reduce subsidies to oil wholesalers.

Until now, the industry ministry has subsidized 60% of gasoline costs over ¥168 and under ¥185. Starting Thursday, the subsidy dropped to 30% for prices in that range, and from Jan. 16 the subsidy will end.

The ministry, however, will continue to subsidize the entirety of costs beyond ¥185 per liter.