Japan starts new gasoline subsidy to cut prices by 10 yen per liter

Typical JGovt approach, subsidy and subsidy.

The price of oil has been dropping for a while, but gasoline prices remain high, and yes before you jump down my throat and say that this is the oil that was bought six months ago, I know that, but it has been down for a good six months. So why does the gov't have to subsidies these companies? As with rice there is a thumb being put on the scale against the consumer and we are all losing.

Making petrol cheaper and encouraging more cars on the road is the last thing anyone should be doing in a climate emergency.

Isn’t this part of a cycle of increased debt driving reduced yen value driving increased import costs?

A debt to gdp ratio of 240% seems hard to sustain.

Maybe when you’re in a hole, stop digging?

Is it not strange that when an event impacts oil markets that the price of gasoline instantly rises at the pumps in Japan?

When oil markets price downwards there isn’t a change…

And how does making fossil fuel cheaper contribute to the already woeful efforts at lowering carbon emissions - as promised?

Does the LDP seriously think it can balance Japan's fiscal books when it throws public money at people and corporations every time there's a jump in prices?

Wow 10 yen that’s supposed to make the people happy thats the best

ISHIBA and his BOYS can do for the people come on

If 10 yen is the best the LDP has, then July's election is going to be a 'bloodbath'!

How stupid are voters in Japan. I forget is it 52 or 53 yen total taxes per litre on gasoline in Japan.

The infinity better policy approach is to lower taxes; less government is always a better option.

Who cares, most of us here don't have a car, and even if, but we also don't have voting rights to express our thankfulness or complaints about such measures.

@Sven: I have two gas-guzzling cars but then again, I don't care about the gas prices. Those are cheap enough.

@Sven Asai

Not everyone is poor. There are over 75,000,000 cars registered in Japan.

@ Sven Asai

Oil prices and resulting petroleum products do affect all of us bar jungle dwelling indigenous tribes

It's 196/liter for regular in my area so any help is appreciated.

As MarkX indicated - crude prices have been steadily dropping since last year.

There was a jump up again for short term in January ( Trumps presidency) to around $80/barrel but it's been in the low to mid $60 for a while back to prices of 4 years ago.

If oil companies play fair then there should be quite a natural decrease in prices for the coming months.

But I won't be holding my breath.

This is no subsidy. They are just reducing the level of tax for a while. Talk about doublespeak!

The wholesale price of gas is lower than 6 months ago, yen is stronger than 6 months ago but gasoline prices at the pump are still at record highs. Companies are ripping of the consumer while waiting for the govt subsidies to double dip.

The retail price is made up of more than the price of a barrel of crude oil. I believe property tax on commercial property is based on the appraised value by local tax authorities. As land prices have been rising in urban settings, the taxes a gasoline stand operator must pay increases.

Also, employees have received raises which is also reflected in higher pump prices.

Japan sources only limited amounts of crude on the spot market. Most comes from long-term contracts with Saudi Arabia and United Arab Emirates. They agree to supply a certain amount of crude at a certain price. When prices go down Japan pays above the world price but when prices rise rapidly Japan pays less than the world spot price.

Japan pays a premium for a guaranteed supply and is protected from shortages and rapid increases in price.

It seems to me JT is making a very good point about the political timing of this subsidy, at least twice in the article. It also seem to me that such a point has gone right over the heads of commenters

I agree with claims that this is electioneering and/or populism.

Most people I see on tv filling their car and moaning about the gasoline price have a car that looks much newer and therefore definitely more expensive than mine. Mine is a big luxury car, but I bought it very cheaply because its a 2008. Part of me wants to tell such people to drive an older car, which would save them way more money than 10 yen off the price of gas, but then I remember that Japan is a car manufacturer and anyone buying a new car supports the economy more than I do. So perhaps its good to knock 10 yen off when such folks are feeling the pinch, so long as the cars they are buying are mostly Japanese ones made in Japan.

Speed

It's 196/liter for regular in my area so any help is appreciated.

Wow! Is that Hokkaido/Okinawa? My local price for self regular is ¥162-¥172. ( I use diesel which ranges from ¥139-¥145.)

This 10 yen goes straight to the oil companies profit line as they have no obligation to drop the price by 10 yen

Reduce tax on gasoline? No problemo!

Cut the tax on rice? Shhhhhh...muzukashiiii

It's already down from a month or so ago when in my part of Tokyo I saw gas going for 188 per liter. This morning I filled up for 171 and I saw it posted for 169 or lower, and that is without the subsidy.

Speed

It's 196/liter for regular in my area so any help is appreciated.

garypen Wow! Is that Hokkaido/Okinawa? 

Nah, it's in southern Shikoku. Cost beaucoup yen to transport things out here.