Japan Caps Gasoline Prices at ¥170 as Middle East Tensions Drain Subsidy Fund

Japan's Prime Minister Sanae Takaichi announced that regular gasoline pump prices will remain capped at around ¥170 per liter to protect household spending and transport operators from disruptions in Middle Eastern oil supplies.

The decision effectively freezes a previous plan to raise the price ceiling, with the government committing to fund fuel market interventions that have already cost ¥9 trillion since January 2022.

Takaichi instructed Industry Minister Ryosei Akazawa to negotiate funding with Finance Minister Satsuki Katayama, aiming to draw money from a ¥2.5 trillion reserve fund created under the fiscal 2026 supplementary budget enacted in June.