The Japanese Ministry of Industry and Trade (METI) has announced that it will end its oil products subsidy provided to oil wholesalers at the end of September 2023. Before that, the subsidy will be lowered by 10% every two weeks between June and September 2023.
The METI started providing the subsidy as an emergency measure in January 2022 when gasoline retail prices exceeded JPY170/l (US$1.21/l), with a maximum funding of JPY5/l (US$3.6c/l) for gasoline, gasoil, kerosene, heavy fuel oil and aircraft fuel.
The maximum funding was raised to JPY25/l (US$18c/l) in March 2022, and to JPY35/l (US$25c/l) in April 2022. It was cut by JPY2/l each month during the period between January and May 2023, decreasing back to JPY25/l. The highest funding amount was JPY41.40/l (US$30c/l) in June 2022. The subsidy programme is estimated at a cost of JPY6,200bn (US$44.2bn).
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