Photo/Illutration Prime Minister Fumio Kishida, right, with Natsuo Yamaguchi, leader of Komeito, at the prime minister’s office on June 25 (Takeshi Iwashita)

The government plans to subsidize about 10 percent of household electricity costs from August to October, sources said. 

The government is considering subsidies of 3.5 yen per one kilowatt-hour of electricity and 15 yen per one cubic meter of gas over the three months, the sources said.

The figures would translate into monthly reductions of 1,400 yen ($8.75) in electricity bills and 450 yen in gas bills for an average household, around the same level as the subsidies in place in April, the sources said.

Subsidies for household electricity and gas costs were introduced in January 2023 following a surge in fuel prices driven by Russia’s invasion of Ukraine. After concluding that the prices had stabilized, the government stopped the program with the last subsidizes provided for the bills for May.

However, at a news conference on June 21, Kishida announced plans to reinstate them from August to October as “emergency assistance to survive the severe heat.”

He also said the government plans to maintain gasoline subsidies for the rest of the year.

Kishida outlined those measures to Natsuo Yamaguchi, leader of Komeito, the junior coalition partner of Kishida’s ruling Liberal Democratic Party, during a meeting at the prime minister’s office on June 25.

About 2 trillion yen, partly sourced from reserve funds, are expected to be allocated for utility and gasoline subsidies, the sources said.

The government plans to finalize the plan’s details as early as this month after consulting with the coalition parties.

Some in the government and ruling coalition have criticized these stimulus measures, dismissing them as handouts that Kishida hopes will improve his chances of winning the LDP leadership election this autumn.

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