Japan PM Commits to Gas Price Subsidies Amid Middle East Crisis

Japanese Prime Minister Sanae Takaichi has announced that her government will continue to provide subsidies to cap gasoline prices, amidst concerns over inflation and disruptions in energy imports from the Middle East. The program keeps gasoline prices at around 170 yen ($1.06) per liter.

Takaichi instructed officials to prepare for funding needs, including tapping into reserve funds, given uncertainty over crude oil prices. She emphasized that her government will 'protect the people and their livelihoods' and prevent economic disruptions.

The government's subsidies have been costly, with 80% of the allocated 1.16 trillion yen spent as of July. Lawmakers from both ruling and opposition parties have called for a rethink on the subsidies due to concerns over Japan's fiscal health.