TOKYO: Japan’s industry ministry raised on Wednesday its gasoline subsidy for oil distributors to the upper limit of 25.0 yen ($0.21) a litre for the week starting March 31, up from 18.6 yen a week earlier.

The ceiling on the subsidy was raised to 25 yen early this month to help blunt a surge in fuel prices following the Russia-Ukraine conflict.

Japan adopted a temporary subsidy programme in late-January after tight global supplies increased oil prices, with the Russian invasion of Ukraine causing a huge spike in oil prices further. The programme was extended till April-end from an earlier plan of March-end.

The government sets the subsidy amount every week if the retail price of gasoline exceeds a threshold of 170 yen. Monday’s retail price was 174.0 yen, the ministry said, marking a second straight weekly decline, helped by the subsidy.

However, the ministry is raising the subsidy again as the gasoline retail prices are expected to climb next Monday to reflect higher crude oil prices. 

Reuters