Tokyo: Japanese Prime Minister Sanae Takaichi on Thursday hinted at reducing government subsidies aimed at keeping gasoline prices at around 170 yen per liter. Junya Ogawa, head of the Japanese opposition Centrist Reform Alliance, asked Prime Minister Takaichi about the government's draft fiscal 2026 supplementary budget during a meeting of the Budget Committee of the House of Representatives.

According to Philippines News Agency, during discussions on the government's draft fiscal 2026 supplementary budget, Takaichi stated, "We will flexibly consider the matter, including gas prices," indicating a potential shift in subsidy policy. While Ogawa urged the government to consider public intervention to manage the distribution of naphtha amid concerns over supply disruptions, Takaichi assured that the country has secured the necessary amount of naphtha and is not considering restrictive measures at this time.

Regarding the proposed two-year consumption tax cut for food, Takaichi mentioned that the multiparty National Council on Social Security is currently discussing the tax rate and timing of its implementation, but did not provide specific details. She encouraged lawmakers to focus on realizing the tax reduction rather than finding reasons to oppose it.

The 3,113.5-billion-yen draft supplementary budget, primarily intended to establish new reserve funds in response to Middle East tensions, is anticipated to be approved by the Budget Committee of the lower chamber of parliament. The ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party, are expected to support the budget. The Democratic Party for the People, an opposition group, is also considering supporting the extra budget. Following committee approval, the draft budget is likely to pass the full Lower House in a plenary meeting vote later in the day.