ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Energy

Japan floats surprise gasoline subsidy to cap prices at pump

Money for refiners risks distorting energy market in transition, critics say

Japan's gasoline prices hit a roughly seven-year high in early November amid surging crude prices and a weaker yen. (Photo by Munemasa Horio)

TOKYO -- Japan's government has proposed paying oil refiners to keep down the price of gasoline, just days after nations agreed to move faster to end "inefficient" subsidies for fossil fuels.

One proposal would offer refiners a subsidy of up to 5 yen per liter whenever retail prices top 170 yen, with the idea that the savings will be passed on to consumers. The average price for regular gasoline in Japan stood at a roughly seven-year high of 169 yen ($1.48) per liter on Nov. 8.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more