TOKYO: Japan will consider steps to cushion the economic blow from rising fuel costs caused by the conflict in the Middle East including curbing gasoline prices, Prime Minister Sanae Takaichi (pic) said on Monday (March 9).
"Many people are worried about rising gasoline prices," Takaichi told Parliament. "Taking this into account, the government has been considering since last week what steps it can take."
"We're considering steps to avoid gasoline prices from rising to levels intolerable for the public," she said, adding that such measures could be funded by tapping reserves.
Takaichi ruled out overhauling the government's draft fiscal 2026 budget, which is now being deliberated in Parliament, or compiling a stop-gap budget to fund the measures.
Oil prices surged more than 25% on Monday to their highest levels since mid-2022 as fears of prolonged shipping disruptions gripped the market due to the expanding US-Israeli war on Iran.
The spike in oil prices, if it persists, would deal a heavy blow to Japan's economy given its huge reliance on imported fuel. (Reporting by Leika Kihara; Editing by Tom Hogue and Thomas Derpinghaus)
