Emergency Measures for Fuel Support

Thank you all for your hard work.

I will now explain the emergency measures

to curb sharp fluctuations, in light of the situation in the Middle East,

as follows.

Regarding subsidies for fuel oil such as gasoline, diesel, heavy oil, and kerosene,

they are intended for fuel oil

subsidies, and

are strictly measures to curb sharp fluctuations.

In addition, members of the ruling parties,

as well as the Democratic Party for the People, the Shudo,

and opposition parties such as the Constitutional Democratic Party,

have also raised concerns about the fiscal burden

and suggested a gradual review

and that we should consider an exit strategy.

I have received these recommendations.

Therefore, while closely monitoring

the impact of the situation in the Middle East

on future prices and the economy,

we will consider how future support should be provided,

taking into account proposals from each party,

and I will instruct the minister to do so.

Today, I will instruct the Minister of Economy, Trade and Industry.

That is the instruction I will give.

At the same time, to secure

the funds needed for fuel support for the time being,

we will ensure the required fund size.

I will instruct the Minister of Economy, Trade and Industry

to take steps to secure funding

and make the necessary adjustments.

That is my instruction.

- That is all from me.

Could you call on me?

- Go ahead.

I'm Okuhara from the Tokyo Shimbun.

Thank you.

I'd like to ask about the review.

Some reports have said

that the subsidies will already be scaled back starting in November,

with prices rising by about five yen

on average each month.

That is one forecast being reported.

Will the review you are instructing

the minister to conduct be based

on that proposed plan,

or will it start from a blank slate?

Which will it be?

- I will instruct the Minister of Economy, Trade and Industry to consider it

starting today,

so I won't prejudge the outcome.

However,

we will consider how support should be provided flexibly,

including the duration of support

and how the measures will be phased out.

The details have not yet been decided,

- yet.

I have one more question.

The other day, at the milestone marking ten years of reconstruction in eastern Japan,

you also said that

the subsidies were contributing to the rate of price increases,

or rather, that you thought

- they were.

- Sorry, could you say that again?

You have also said before

that the gasoline subsidies

—sorry, the fuel subsidies

were, you know,

helping to curb the rate of price increases.

When you consider that it contributes to...

I believe you also spoke about having said

something along those lines.

You said there had been criticism from both the ruling and opposition parties,

that there had been such comments,

but even so, why now

are you issuing this instruction?

If you could share how you feel—

Yes.

Well, as for me,

to curb the rate of

price increases,

I believe this fuel subsidy has made a very

significant

contribution.

Especially now, as well,

compared with prices in Europe and

South Korea, Japan's prices are overwhelmingly

lower

than theirs.

Some countries, for example, charge 400 yen

per liter,

while Japan is at around 124 yen.

This also applies to diesel, heavy oil,

and kerosene,

so in that sense,

you may not really feel

its impact,

but it has helped curb prices through transportation

costs, as well as costs that support industry,

and in various other ways,

helping keep down prices that affect

people's lives and livelihoods.

I believe it has been helpful.

However,

during Diet debates to date,

members of various parties

have said we should consider an exit strategy.

They have also asked whether

we should review it gradually,

and raised that point,

so

I decided to instruct them to examine it

at this point.

Did you assume the effect of the consumption tax cut

starting next April

could offset it,

or something like that?

Was that not the case?

As for uninterrupted measures against rising prices,

for people who are employed,

this December,

especially with an income of zero,

each person will receive 30,000 to

60,000 yen, which will be returned

through a tax rate adjustment.

There are also measures like that,

and from next April

the consumption tax cut is still under

consideration as a bill,

but if it is passed,

those measures will also get underway.

However,

regarding this fuel

subsidy,

regardless of whether they are in the ruling or opposition parties,

all parties have raised this issue,

so

at this point, we need to review it

once.

And this is also under

extremely uncertain circumstances in the Middle East,

so,

it is difficult to forecast things like

crude oil prices and

the amount of funding

that will be needed, but

taking future crude oil prices and

the fund's balance into account

as well,

I would like you to consider it.

— That's what I think.

There are diplomatic issues,

— Okay, one last question.

I'm Fujiwara from Nippon TV.

The opposition has raised this point

before, I believe.

Why

at this point

did you decide to issue

— this instruction?

For the time being, as I said at the outset,

this is about securing the necessary

funds, and I will discuss it

with the minister,

so I will issue this instruction.

I will issue the instruction,

but nothing will suddenly change

starting next month.

That said,

at this point, we have also

received calls asking what

the exit strategy for these measures will be,

so

we will ask them to consider it.

— That's the plan.

All right, that's all. One more—

— one more comment.

Could you just tell us

when you'll reach a conclusion?

Please tell us when you'll reach

— a conclusion.

Well, that depends on how the review goes,

and we first need to secure

the necessary funds for the current subsidies,

including the required fund size,

so

we have to consider both aspects

as we proceed.

That's what we need to do.

I can't give you a specific date,

such as a particular day this month,

but we will

ask them to consider it as soon as possible.

— That's what it comes down to.

— Thank you very much.

Thank you for your time.