Kyodo: Japan weighs reserve funds to sustain fuel subsidies

Japan's government is considering allocating several hundred billion yen from its reserve fund to continue subsidising gasoline prices amid the Middle East crisis, Kyodo reports.

The report said Tokyo could face a funding shortfall as early as August.

To maintain subsidies aimed at keeping gasoline prices at around 170 yen per litre, the government plans to draw several hundred billion yen from its reserve fund.

According to Kyodo, the price cap is expected to be raised to 175 yen per litre from September.

The fuel subsidy programme has been extended through October.

By Bakhtiyar Abbasov