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Six Parties Agree to Scrap Fuel Surcharges, Starting With Gasoline on Dec. 31, 2025

Parties delayed a decision on stable replacement revenue for about a year to address a ¥1.5 trillion gap.

Overview

  • The accord ends the 25.1‑yen‑per‑liter provisional gasoline tax on December 31, 2025 and abolishes the 17.1‑yen diesel surcharge on April 1, 2026.
  • Ruling and opposition negotiators will seek to pass revised legislation in the extraordinary Diet, using an opposition-submitted bill as the base.
  • Replacement funding options under review include spending cuts, narrowing corporate tax breaks, and higher taxes on high‑income earners, with initial decisions targeted by year‑end.
  • Participants said plans must protect road upkeep and other aging‑infrastructure needs as stable financing is developed over the next year.
  • The government proposes cutting Okinawa’s special relief from 7 yen to 3.8 yen, yielding a smaller price drop than the national average, which Governor Denny Tamaki opposes; remote islands already pay over 30 yen more per liter than the main island.