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Japan Plans Bigger Winter Energy Relief, Lifting January Power and Gas Subsidy Above ¥3,000

Officials target Cabinet approval this week in response to persistent inflation.

Overview

  • The three‑month January–March support is being expanded beyond the roughly ¥6,000 initially envisioned, with the heaviest relief front‑loaded in January.
  • Government papers indicate February assistance may also be raised, with final figures under negotiation for inclusion in the Nov. 21 economic package.
  • Cumulative spending on energy‑bill subsidies since 2023 totals about ¥4.57 trillion and would approach the ¥5 trillion range with the new round.
  • Coalition pressures, including firm demands from Nippon Ishin and calls within the LDP for immediate relief, pushed the increase in household support.
  • The separate transition subsidy for oil wholesalers was lifted to ¥15 per liter on Nov. 13, and regular gasoline averaged ¥169.80 per liter as of Nov. 17, the lowest in about two and a half years.