LDP proposes gradual reduction of fuel subsidies

{"#LDP Proposal":"The Liberal Democratic Party (LDP) has compiled a proposal for the government to gradually reduce subsidies for gasoline and other fuels. The party suggests raising the benchmark national average retail price of regular gasoline from around ¥170 per liter to about ¥175 per liter by December, with a monthly increase of ¥5. The current subsidy amounts to about ¥43 per liter. The LDP argues that Japan's gasoline prices are lower than those in Europe and the United States, and they advocate for a smooth transition to a sustainable subsidy program. The party also includes measures to curb rising kerosene prices. The proposal aims to address concerns over the fiscal burden and to ensure a smooth transition to a sustainable subsidy system.","#Fiscal Burden Concerns":"Concerns over the fiscal burden have led to calls for an exit strategy for the subsidy program. The LDP's proposal comes as Prime Minister Sanae Takaichi ordered industry minister Ryosei Akazawa to consider reviewing the system. The government started providing gasoline subsidies in 2022 under the administration of then Prime Minister Fumio Kishida, but the program was terminated at the end of last year and resumed in March due to rising crude oil prices.","#Energy Demand":"The LDP also calls for the resumption of aid for electricity and gas bills, given higher energy demand in winter. The proposal aims to ensure a smooth transition to a sustainable subsidy system while keeping a close eye on people's livelihoods and economic activities."}