LDP Policy Chief Says Gasoline Subsidy Cuts Needed, Open to Winter Utility Aid

Japan's ruling Liberal Democratic Party policy chief, Takayuki Kobayashi, said on Saturday that the subsidy holding down gasoline prices needs to be reduced, according to Yahoo!ニュース. Speaking to reporters in Sapporo, he described the measure as an emergency response to conditions in the Middle East and said it should be reviewed with an eye toward eventually ending it.

Kobayashi also said he is open to considering subsidies for winter electricity and gas bills. He cited the coming cold season and rising prices, saying support should be weighed from the standpoint of protecting people's daily lives, Yahoo!ニュース reported.

The remarks follow an instruction from Prime Minister Sanae Takaichi on Friday. According to Yahoo!ニュース, she directed Economy, Trade and Industry Minister Ryosei Akazawa to review the gasoline subsidy, including phasing down payments and eventually ending them.

Yahoo!ニュース also reported that a plan under discussion would raise prices in steps of 3 or 5 yen per month, possibly starting as early as December, according to people familiar with the matter. The reporting did not specify how large the current subsidy is or how much the changes would cost.

The debate touches both household budgets and the government's energy support spending, with the gasoline measure framed by Kobayashi as temporary. Whether electricity and gas aid is included, and on what scale, has not been decided.

Watch for the government's review of the gasoline program and any decision on winter utility subsidies.