As crude oil prices remain high, the government will increase the amount of subsidies provided to oil retailers from the 28th to prevent retail prices of gasoline and other products from rising.
In order to curb the rise in prices of gasoline and kerosene, the government has provided subsidies to oil retailers when the national average retail price of regular gasoline exceeds 172 yen per liter. ..
However, due to Russia's military invasion of Ukraine, crude oil prices have remained high.
Therefore, from the 28th, the government will lower the standard of subsidy payment when it exceeds 168 yen per liter.
As a result, the national average retail price of regular gasoline is expected to be suppressed to around 168 yen per liter.
In addition, the subsidy has been limited to 25 yen per liter, but it will be expanded to 35 yen, and if it exceeds 35 yen, half the amount will be paid.
The government says that the subsidy is expected to have the effect of suppressing the rise in the consumer price index by about 0.5 points, and hopes to reduce the burden on households and businesses.
However, due to the situation in Ukraine, the prices of resources such as crude oil are not expected to stabilize, and the unusual policy of the country to curb retail prices is likely to be an issue in the future, including the issue of financial resources.