Japanese government cuts subsidies; gasoline prices rise.
Average gasoline prices are set to rise over ¥5 as government subsidies to oil wholesalers are reduced starting Thursday.
The average retail gasoline price is sitting at about ¥175 per liter, but brace yourself because it’s getting ready to rise by more than ¥5. The government's announcement to cut back on subsidies is about to hit us hard. Previously, they were covering 60% of the gasoline costs between ¥168 and ¥185, but starting Thursday, that drops to 30%.
And it gets murkier from there! On January 16, all subsidies for prices in that range will vanish completely. The only saving grace is the government will still cover all costs exceeding ¥185 per liter, but we all know what that means for our wallets!
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