Prime Minister Shigeru Ishiba said Tuesday that the government will launch a new program on May 22 to reduce gasoline prices by ¥10 ($0.07) per liter, as a measure to cope with the impact of U.S. President Donald Trump's tariff measures and inflation.
"We'll implement a fixed-amount price reduction in response to rising prices," Ishiba told reporters after meeting with industry minister Yoji Muto at the Prime Minister's Office.
Under the new program, the prices of gasoline and light oil will be cut by ¥10, heavy oil and kerosene by ¥5 and aircraft fuel by ¥4, Ishiba said.
Currently, the government provides oil wholesalers with subsidies to keep gasoline prices at around ¥185.
The government will also resume subsidies aimed at reducing electricity and gas bills this summer to cope with extreme summer heat. These subsidies were discontinued in March.
On the details of the resumed subsidies, Ishiba said, "We'll make a decision by the end of May after assessing fuel and electricity price trends."
The government plans to use reserve funds under its fiscal 2025 budget, rather than compiling a supplementary budget, to finance measures to curb gasoline, electricity and gas prices ahead of this summer's House of Councilors election.
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