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Japan to subsidize oil wholesalers for 1st time to curb fuel price

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The government has decided to set aside 80 billion yen for the subsidy program in its supplementary budget for the current fiscal year through March.

Your tax yen at work. Isn't how the whole "free market" scheme supposed to work is the governmentreleases strategic oil reserves to raise the supply and thus lower prices? Maybe simpler in the JGov view to just cut out the middleman, give cash to oil companies and see how much they want to reduce the prices for the consumer?

Socialism for the rich at its best.

10 ( +11 / -1 )

Would it not make more sense just to cut the tax rate on gas and other oil products? With the price being this high, they are already reaping higher tax income, so just cut it by 5 yen or 10, and help out the consumer. Why pay a subsidy to the oil wholesalers?

8 ( +9 / -1 )

In 2010, when the Democratic Party of Japan was in power, they added ¥25.1/liter tax on gasoline with the provider that if the price exceeded ¥160 for a period of 3 months, the tax would be cancelled (to be reinstated in the price dropped below ¥130/liter for a period of 3 months). However, after the Great East Japan Earthquake, this proviso was removed to raise tax for reconstruction. Surely the answer would be to remove the tax now, rather than give money to oil companies who may or may not pass it all on to the consumer.

6 ( +6 / -0 )

I guess I should swap my current car for one that takes regular gasoline.

-1 ( +1 / -2 )

I guess I should swap my current car for one that takes regular gasoline.

Does your current car use premium? My guess is the amount of money you will lose selling the old car and buying a new(er) one would pay for a lot of gas at the small price difference per liter between regular and premium. This situation is temporary.

2 ( +2 / -0 )

Does your current car use premium? My guess is the amount of money you will lose selling the old car and buying a new(er) one would pay for a lot of gas at the small price difference per liter between regular and premium. This situation is temporary.

Thanks for the advice. I'll hold on to my Supra then.

-1 ( +0 / -1 )

I guess I should swap my current car for one that takes regular gasoline.

no get a Mazda CX5 CX8 altezza 2.2 diesel turbo, heaps of torque 450nm, nearly 20km/l diesel being 30yen cheaper than gas.

or smaller Demio cx3 1.5 diesel turbo, gets around 25km/l

steer clear of K cars, yes theyre cheap to run being a 660cc engine, not so good in a crash

2 ( +2 / -0 )

how abt to make lower tax on fuel?

how abt to buy oil from different source and not to import from other side of globe?

but yes we are in Japan where taxpayers money have to be used to help a few/wholesalers/...

1 ( +2 / -1 )

I'm disappointed that there aren't any posters citing the merits of switching from ICE vehicles to EV's.

0 ( +0 / -0 )

How about removing once and for all, If I remember rightly the 20 yen per litre tax implemented to support the Iraqi war which is no longer. It expired some years ago and the government reinstated the tax again.

1 ( +1 / -0 )

Under the program, a subsidy of 3.4 yen per liter will be paid to 29 oil distributors and importers for a week starting Thursday with the aim of keeping them from sharply raising their prices of gasoline, diesel oil, kerosene and fuel oil, according to the ministry.

Let me guess that the distributors and importers will pocket the 3.4 yen per liter and raise prices anyways.

1 ( +1 / -0 )

Maybe this'll motivate me to take my bike out of the car...

0 ( +0 / -0 )

The electorate is reaping what they sowed.

0 ( +0 / -0 )

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