Japan’s government is set to spend about $5.3 billion (800 billion yen) to cushion the impact of rising gasoline prices on consumers.
The funding, drawn from the country’s reserve budget, will be used to subsidise fuel distributors, helping to keep pump prices under control.
This comes as global oil prices continue to rise, driven largely by geopolitical tensions in the Middle East, particularly involving Iran.
Authorities in Japan are targeting a reduction in gasoline prices to around 170 yen per litre, down from recent highs of over 190 yen per litre.
The subsidy programme will also cover diesel, kerosene, and heating oil, providing broader relief for households and businesses.
The plan is expected to receive formal approval at a cabinet meeting scheduled for March 24.
Japan, which depends heavily on imported energy, is especially vulnerable to global oil shocks, making interventions like this critical to stabilising its economy.
