TOKYO: The Japanese government approved US$3 billion in spending on Tuesday (May 26) to help households pay their electricity and gas bills as utility costs rise due to the Middle East war.
Like many Asian economies, Japan relies heavily on imported fuel from the Middle East, and has moved to counter the impact of the Strait of Hormuz blockade on supplies and prices.
The decision to help cover bills for three months from July comes a day after Prime Minister Sanae Takaichi announced a plan to compile a US$19 billion extra budget to help tackle soaring prices of everyday goods.
“We approved the spending of 513.5 billion yen at the Cabinet meeting today” to support electricity and gas bills between July and September, Masanao Ozaki, deputy chief cabinet secretary, told reporters on Tuesday.
The subsidies come from reserves included in this fiscal year’s budget.
Ozaki said electricity and gas bills are unlikely to rise significantly this month or next, but rising fuel import prices would be a factor after that.
“Even as the situation in the Middle East remains uncertain, we will do our utmost to ensure there is no disruption to people’s daily lives or economic activity,” he said.
On Monday, Takaichi said the government expected to be able to secure a stable supply of oil until next spring.
