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Japan Lower House Backs Year-End Repeal of Gasoline Surtax

A six-party compromise rewrote an opposition bill, pairing repeal with temporary subsidies to smooth pump prices.

Overview

  • The House of Representatives approved a bill on November 25 to abolish the provisional gasoline surtax, sending it to the upper house for expected passage within the month.
  • The measure would end the gasoline surcharge of about ¥25.1 per liter on December 31 and terminate the light oil provisional tax of ¥17.1 per liter on April 1, 2026.
  • Lawmakers from six ruling and opposition parties revised an opposition-led proposal to secure broad support for the repeal.
  • The government has begun increasing price-suppressing subsidies as a transition measure to limit abrupt changes at the pump.
  • According to the cabinet’s schedule, the gasoline subsidy will reach an amount equivalent to the surtax on December 11 to bridge the shift to the tax’s abolition.