JAKARTA - The Japanese government has restarted a fuel subsidy scheme to curb rising commodity prices following the escalation of tensions in the Persian Gulf region.
The subsidy is set at 30.2 yen (Rp3,124) per liter of regular fuel until next Wednesday to ensure that the average national retail price of fuel remains around 170 yen (Rp18,213).
The subsidy program also includes diesel fuel and heavy oil to help relieve cost pressures for businesses as well as for the agricultural, forestry, and fisheries industries.
As reported by ANTARA from Kyodo, Thursday, March 19, the value of fuel subsidies from the Japanese government will be adjusted (weekly/weekly) based on the estimated retail price of the following week which reflects changes in crude oil prices.
Regular fuel prices in Japan jumped to their highest level of 190.8 yen ($1.75) per liter on Monday (16/3), the impact of rising crude oil prices after the United States and Israel's attack on Iran.
The Japanese government's decision to establish subsidies this time was made following an estimate that fuel prices will continue to rise to 200.2 yen (Rp21,427) per liter next week.
Even though fuel subsidies have been implemented, the Japanese Ministry of Economy said that the time for fuel price reductions could be different between one gas station and another, given that there are still pre-subsidized fuel reserves that have not been issued.
The Japanese government has also not yet determined when the fuel subsidy will be terminated.
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