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Japan raises gasoline subsidy to maximum of 25 yen per litre -Breaking


© Reuters. FILE PHOTO A Tokyo street packed full of vehicles on January 24, 2007. REUTERS/Yuriko Nagao (JAPAN)/File Photograph

TOKYO, Reuters – Japan increased its gasoline subsidy to oil distributors up to 25 yen ($0.1944) per litre starting April 21. This is an increase of 20.3 yen a Week earlier.

After tight supplies in the global market pushed up crude oil prices, the temporary subsidy program was established to reduce fuel costs. Further pressure came from the conflict with Ukraine that started on February 24th.

The government has indicated that it is considering extending and increasing the limits on subsidies as high-energy prices continue to impact households and businesses.

This program was extended to the end April. The ceiling has been raised from 5 yen to 25 yen per liter.

If gasoline retail prices exceed 170 yen, the government will set the weekly subsidy amount.

According to the ministry, Monday’s retail prices were 173.5 yen. This is slightly less than 174.0 yen just a week before.

($1=128.5700 yen)