News On Japan

Gasoline to Become Cheaper in Japan with Tax Abolition

TOKYO - Gasoline prices rose for the first time in four weeks to 173.60 yen per liter as of 2 p.m. on November 6th, up just 0.10 yen from the previous week. However, with the government’s decision on November 5th to abolish the provisional gasoline tax by the end of the year, prices are expected to fall in stages before the abolition takes full effect.

Under the government’s plan, the removal of the provisional tax will be accompanied by phased subsidies that will lower prices ahead of schedule, resulting in a reduction of 25.1 yen per liter by December 11th.

People on the streets expressed relief at the prospect of cheaper fuel. One person said, “That’s very welcome. If gas prices go down, I might take more long drives.” Another commented, “Gasoline is a business expense—something we can’t do without. If costs fall, it helps the company too. I think it’s great.”

After nearly five years of steady increases—about 40 yen per liter—gasoline prices have long weighed on household budgets. The decision to lower them has brought optimism across various sectors.

Hirotaka Ueno, representative of ZZZ365, noted that two years ago he was paying about 10,000 yen less per month. “For someone who travels long distances, it’s a genuine relief,” he said. “For food truck operators, fuel costs directly affect business, so this is the best news possible.”

Among those most affected is Terukazu Harada, manager of the “Supercar Yakiimo” food truck, who sells roasted sweet potatoes at events around the country using his red Ferrari. Due to poor fuel efficiency, he has been paying nearly 100,000 yen a month in gasoline costs. “The price of sweet potatoes has gone up, and so has the gas used to roast them—everything has risen,” Harada said. “That’s why I’m truly grateful for the gasoline price cuts. Fuel costs are literally a matter of survival for me.”

At gas stations, operators also welcomed the government’s step-by-step approach. One station manager said, “If the provisional tax had been scrapped all at once at year-end, things could have gotten chaotic. The last time prices suddenly dropped, there were huge traffic jams and we couldn’t keep up with demand. Lowering prices by 5 yen at a time before removing the tax completely was a smart decision by the government.”

However, while the abolition of the provisional gasoline tax will ease financial burdens for consumers and businesses alike, the government has yet to determine alternative sources of revenue, leaving questions about fiscal sustainability unresolved.

Source: FNN

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