The Japanese government has allocated 989.15 billion yen in subsidies to alleviate the burden of rising electricity and gas bills, depleting its reserve fund earmarked for inflation control. The aid package aims to help households cope with escalating energy costs in the fall, a period when air conditioners are still in use and car travel is common.
Prime Minister Fumio Kishida’s administration had initially ended the subsidies for electricity and gas bills in May but later reinstated them from August to October to support struggling households. Additionally, subsidies to oil wholesalers will continue to curb the surge in retail gasoline prices until the year’s end.
Finance Minister Shunichi Suzuki highlighted the need for an exit strategy considering the impact on decarbonization efforts and financial burdens. Japan’s core consumer prices rose by 2.7 percent in July, reflecting the escalating energy costs following the subsidy removal.
© KYODO
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