TOKYO: The Japanese government will stop providing subsidies aimed at curbing power and gas bills at households and businesses at the end of May, industry minister SAITO Ken said Friday.

The decision reflects relative stability of fuel prices, which rose sharply following Russia’s invasion of Ukraine in February 2022.

In the meantime, the government will keep subsidies designed to curb gasoline and kerosene prices in place for some time beyond the planned April 30 expiration amid escalating tensions in the Middle East.

Since January last year, the government has been providing subsidies to power and gas companies–3.5 yen per kilowatt-hour of electricity for household use and 15 yen per cubic meter of city gas at present.

Before they are ended, the power and gas subsidies will be cut by about half in May.

After the end of the electricity subsidy, the monthly charge for a model household consuming 260 kilowatt-hours a month served by Tokyo Electric Power Company Holdings Inc. will be 910 yen higher than it is now.

Saito expressed readiness to resume support if electricity and gas prices surge. “We will respond promptly and flexibility if emergency measures become necessary, in order to prevent peoples’ lives from being excessively affected,” he said.

The gasoline subsidy, paid to refiners, has helped to keep the national average price of regular gasoline at around 175 yen per liter.

Saito said the gasoline subsidy was “not something that should be kept forever.” But he did not say when the subsidy will be ended.

JIJI Press