Prime Minister Shigeru Ishiba announced on Tuesday a new package focused on gasoline price relief for households. These measures aim to lower energy costs and ease inflation-related burdens. Starting May 22, fuel prices will drop nationwide.
Gasoline and diesel fuel will decrease by 10 yen per liter. Meanwhile, kerosene and heavy oil will fall by 5 yen per liter. Ishiba stressed that these cuts will directly benefit families already dealing with rising living costs.
During summer, household energy demand usually increases due to extreme heat. Therefore, the government will introduce further gasoline price relief steps. From July to September, Japan will curb electricity and gas bills. Specifics on these energy measures will come in May.
The government has scrapped an earlier idea to offer direct cash handouts. Instead, it chose targeted price cuts to deliver faster support. The decision arrives just before the House of Councillors election, where voter confidence will be critical for Ishiba.
Currently, the ruling coalition lacks a majority in the House of Representatives. This makes the upcoming election a crucial political test for the administration. Ishiba continues to face low approval ratings in national opinion polls.
On Tuesday, the Liberal Democratic Party and Komeito submitted formal requests to Ishiba. They urged action on inflation and the potential economic impact of recent U.S. tariff hikes. These recommendations influenced the gasoline price relief package.
The average gasoline price will drop from around 185 yen to 175 yen per liter. This brings prices back to early 2022 levels, shortly after the Ukraine crisis began. The government will use reserved funds not tied to the regular budget for financing.
However, Ishiba did not reveal how long this relief will continue. The final duration depends on cross-party discussions about ending the current gasoline surcharge. Talks include the LDP-Komeito coalition and the Democratic Party for the People.
Japan, heavily reliant on imports, continues to face elevated costs for energy and food. Inflation remains persistent, even as price growth slows. In March, consumer prices rose 3.6 percent year-on-year, largely due to higher rice and energy costs.
Despite wage increases, inflation continues to erode household purchasing power. The gasoline price relief program reflects the government’s latest strategy to balance public expectations and economic stability.
