Japan will implement for the first time its oil subsidy programme to curb petroleum fuel prices, paying a subsidy of JPY3.4/l (US$2.6c/l) to 29 oil distributors for a week, starting on 27 January 2022. The size of subsidies be revised by 3 February 2022, depending of movements in retail gasoline price and the program will be in place until the end of March 2022. The Japanese government has set aside JPY80bn (around US$700m) to subsidise petroleum fuel prices in its supplementary budget for the current fiscal year through March 2022.
Meanwhile, Eneos Holdings has decided to close its 127,500 bbl/d Wakayama refinery in October 2023 due to lower domestic fuel demand and growing global competition. Earlier in January 2022, the group unveiled plans to partially shut its Negishi refinery from October 2022, reducing its capacity from 270,000 bbl/d to 150,000 bbl/d