Japan mulls electricity, city gas subsidies in summer

Electricity and city gas fees are likely to start rising around June as prices for crude oil and liquefied natural gas, which are used for thermal power generation, have been soaring because of the conflict in Iran.

The government has already provided electricity and city gas subsidies in recent years to cushion the impact of rising prices.

Most recently, about 7,000 yen in subsidies per household was provided in the first three months of this year.

In addition, the government has offered gasoline subsidies since March.

About 980 billion yen remained in a pool of funds for the gasoline relief as of the end of April, but the money may run out if the measure remains in place for a long time.

The government is prepared to use reserve funds set aside under the fiscal 2026 budget, if necessary, and could end up putting together a supplementary budget.