Like many Asian countries, Japan, the world's fourth largest economy, relies heavily on imported fuel from the Middle East, and has moved to counter the impact of the Strait of Hormuz blockade on supplies and prices.
The decision to help cover bills for three months from July comes a day after Prime Minister Sanae Takaichi announced a plan to compile a $19 billion extra budget to help tackle soaring prices of everyday goods.
"We approved the spending of 513.5 billion yen at the Cabinet meeting today" to support electricity and gas bills between July and September, Masanao Ozaki, deputy chief cabinet secretary, told reporters on Tuesday.
People walk along Takeshita street at Harajuku shopping area in Tokyo, Japan, August 10, 2024. Photo by Reuters
The subsidies come from reserves included in this fiscal year's budget.
