Photo/Illutration Gasoline prices have risen in Tokyo. (Toshio Tada)

The government on April 26 decided to compile a package of emergency measures worth more than 13 trillion yen ($102 billion) to deal with soaring consumer prices.

The decision would commit about 6.2 trillion yen in public funds, including 1.5 trillion yen set aside for cushioning the impact of higher crude oil prices and 500 billion yen for ensuring a stable supply of energy, raw materials and food.

The money will be spent on increasing a subsidy to oil wholesalers from up to 25 yen per liter to 35 yen, providing a subsidy to child-rearing households that buy energy-saving houses, and raising additional funds to keep animal feed prices stable.

The government will allocate 1.3 trillion yen to encourage financial institutions to provide loans to businesses whose earnings have plunged due to the COVID-19 pandemic.

It will also extend the deadline for businesses to receive near-zero-interest, uncollateralized loans from government-affiliated financial institutions until the end of September.

Another 1.3 trillion yen will be earmarked to offer low-income households 50,000 yen per child and to increase the size of an extraordinary local revitalization subsidy to help municipalities support those in need.

The emergency measures, including those funded by the private sector, will likely total 13.2 trillion yen, the sources said.

The government plans to use 1.5 trillion yen in reserve funds from the budget for the current fiscal year to fund the package.

It is also considering drafting a supplementary budget worth 2.7 trillion yen during the current Diet session to cover the costs of measures to deal with higher crude oil prices. Those measures will remain in place until the end of September.

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