Japan Financial Services Agency published a summary of Finance Minister Katayama’s post-Cabinet press conference setting out Japan’s urgent fuel-oil support measures, including subsidies from 19 March intended to bring the average nationwide retail gasoline price to around JPY 170 per litre, alongside the same approach for diesel, heavy oil and kerosene. He also commented on heightened financial market moves, including yen depreciation, saying authorities would take all possible measures while avoiding remarks on specific exchange-rate levels or intervention. On fiscal impact, Katayama said the cost is difficult to predict given uncertainty over crude oil prices and the Middle East situation, while indicating the fuel-subsidy fund balance is around JPY 280 billion. As an illustrative scale, he referenced an order of magnitude of around JPY 300 billion for one month if prices were at JPY 200 per litre and support reduced them to JPY 170, and noted around JPY 860 billion remained in the fiscal-year reserve fund, which could be used as an option. He also highlighted risks of distribution bottlenecks and supply anxiety for diesel and other inputs and referred to instructions issued to industry to avoid disruptions. While he did not set out a definitive funding plan for support continuing after April, Katayama said the government would seek to maintain support without interruption if elevated prices persist.

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