Japan to tap into reserves for fuel subsidies

The government will earmark 794.8 billion yen to bolster its fund for subsidies for gasoline and other fuels and 5.8 billion yen to extend the subsidy for taxi operators using liquefied petroleum gas beyond its expiration date of the end of this month.

On Thursday, the government launched a program to contain prices for gasoline, gas oil, fuel oil, kerosene and aircraft fuel using the subsidy fund.

Roughly 280 billion yen remains in the fund and there is concern that it could run dry should high prices persist.

The government "will do everything possible to ensure the stable implementation of the support program," Finance Minister Satsuki Katayama told a press conference.