TOKYO, Reuters – Japan may create a new economic stimulus package to ease the burden of high energy prices, which will likely continue given the ongoing conflict in Ukraine.

Kyodo indicated that the temporary subsidies granted to wholesalers of energy would be extended in the final package to be created after Parliament passes fiscal 2022’s budget.

Just a day before, the ruling coalition’s lawmakers called for increased spending to help cushion the impact of Ukraine’s economic crisis. The Ukraine crisis has already impacted households and retailers, driving up energy and food costs.

On Wednesday, the ruling coalition and the center-right Democratic Party for the People, (DPFP) agreed to examine unfreezing a trigger clause that eliminates the gasoline tax when the fuel price exceeds 160 yen ($1.35) for longer than three months.

This clause was frozen in 2011 after funds were needed to rebuild following a tsunami and devastating earthquake.

In January, instead of subsidising gasoline prices over the 170 yen/litre threshold, the government launched a temporary program. It lifted this subsidy to the maximum limit of 25yen in the following week, after gasoline prices increased for the 10th consecutive week.

($1 = 118.1900 yen)