Takaichi Seeks 3 Trillion Yen Fuel Subsidy Budget as Japan Burns 300 Billion Yen a Month
Updated
Updated · Reuters · Jun 1
Takaichi Seeks 3 Trillion Yen Fuel Subsidy Budget as Japan Burns 300 Billion Yen a Month
3 articles · Updated · Reuters · Jun 1
Summary
3 trillion yen is the size of the surplus budget Prime Minister Sanae Takaichi wants to fund rising fuel costs and summer power subsidies as imported energy prices climb.
300 billion yen a month is already being spent to keep gasoline near 170 yen a litre, but even Japan’s biggest-ever oil reserve release has not stopped pump prices from rising.
About 80% of Japan’s energy comes from imported fossil fuels, leaving the country exposed to Middle East-driven oil and gas shocks and adding pressure on the yen and inflation.
Only around half of Japan’s 33 operable nuclear reactors have restarted since Fukushima, limiting a domestic alternative that could reduce reliance on volatile hydrocarbon imports.
The subsidy-heavy approach risks preserving oil and gas demand instead of forcing conservation or accelerating shifts to nuclear power and electric vehicles.