Japan’s industry ministry said on Friday (Nov 7) it will temporarily raise gasoline and diesel subsidies from next week in an attempt to smooth the impact of planned tax cuts on the fuels.
The country’s ruling and opposition parties agreed this week to scrap the gasoline levy by Dec 31 and the tax on diesel by Apr 1 next year to ease the burden on households.
By temporarily raising subsidies on gasoline and diesel, the government hopes consumers will not be tempted to delay purchases before the tax cuts are implemented.
The move should also mean Japan avoids long queues at gas stations if there is a sharp overnight drop in prices.