Japan to Tap $7 Billion from Government Fund to Subsidize Gasoline Prices

Summary

Japan is allocating $7 billion from its contingency reserves to continue its fuel subsidy program, a direct response to soaring import costs caused by a war in the Middle East and disruption to flows through the Strait of Hormuz. This move highlights the severe fiscal pressure on major energy importers, even as the government plans a gradual phase-out of the support.