TOKYO, March 18 — Japan is directing fuel subsidies toward key sectors including transportation and agriculture as part of a broader effort to mitigate rising energy costs, Prime Minister Sanae Takaichi said, as gasoline prices climbed to a national average of 190.8 yen per liter.
The measures are designed to support industries heavily reliant on fuel, with Takaichi stating they would help in “allowing transportation businesses and those in agriculture, forestry, and fisheries to experience the benefits of price suppression,” according to a Cabinet Secretariat statement.
The subsidies, set to begin on March 19, will cap gasoline prices at approximately 170 yen on a national average basis, while also applying to diesel, kerosene and heavy oil. The government expects these measures to ease cost pressures across supply chains and primary industries.
Japan’s transportation sector, along with agriculture and fisheries, plays a central role in domestic logistics and food supply, making them particularly sensitive to fuel price volatility. Rising input costs have been cited by businesses as a key risk to operations and profitability, Reuters reported.
Under the plan, diesel prices are expected to fall to around 158 yen per liter, with kerosene and heavy oil also seeing reductions. The government said these steps would help stabilize operating costs for companies and producers.
The policy follows a surge in global crude oil prices linked to geopolitical tensions, which have increased the risk of prolonged supply disruptions. Japan’s dependence on imported energy has heightened concerns about the impact on economic stability.
Takaichi said the government aims to ensure that the benefits of the subsidies are felt across sectors critical to economic activity, while also addressing public concern over rising fuel costs.
“We understand that many of you may be feeling anxious about the rising prices of petroleum products,” she said on social media.
原油価格の高騰を受け、本日（３月１８日）、ガソリンの全国平均価格が１９０．８円となりました。
— 高市早苗 (@takaichi_sanae) March 18, 2026
ガソリン、軽油、灯油、重油など、石油製品の価格高騰に不安を感じておられる方も多いかと存じます。…
Officials said they will continue to monitor market conditions and adjust support measures as needed to maintain stability in fuel prices and minimize disruption to industry.
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