Japan to set aside around Rp55 trillion in energy subsidies for the summer

Tokyo (ANTARA) - Japan is considering using around 500 billion yen (Rp55.5 trillion) from reserve funds to provide subsidies for household electricity and gas bills during the peak summer energy-demand period. A source said on Thursday (21 May) that the government is preparing subsidies per household that are larger than those during July–September last year. This is because the de facto blockade of the Strait of Hormuz amid the Middle East crisis is expected to push up electricity and gas prices in Japan, which has limited energy resources. The move follows Prime Minister Sanae Takaichi’s instruction on Monday to the Liberal Democratic Party (LDP) and its junior coalition partner, the Japan Innovation Party, to draft detailed support measures related to electricity and gas bills. The policy aims to keep utility costs below the levels seen last summer. Summer in Japan typically raises demand for air conditioning. Last summer, the burden of electricity and gas bills for households fell by around 1,000 yen per month. At that time, the government used around 288.1 billion yen from the fiscal 2025 reserve fund. Electricity and gas subsidies in Japan have been applied periodically in recent years, especially in summer and winter when demand for cooling and heating rises. The programme was first introduced in January 2023 in response to price increases due to Russia’s invasion of Ukraine.