The government’s electricity and gas subsidies and tax reforms were discussed on the 30 October broadcast of “Ohayo Terachan.” Prime Minister Takaichi (高市) announced the details of the subsidies for early winter next year, with the government planning to fund them from reserve funds allocated for responses to the situation in the Middle East.
The program began with a discussion between Friday commentator Naito Yosuke (内藤陽介) and announcer Terashima Naomasa (寺島尚正), during which the government’s plan to subsidize electricity and gas bills from December through February next year was outlined. The reduction in the burden on a typical household was estimated at approximately ¥7,000, and it was explained that subsidies have been provided intermittently since 2023.
The expected electricity subsidy is ¥1 per kWh in December and ¥4.5 per kWh in January and February. Whether to provide a subsidy in March will be considered in light of energy price trends. The funding is to come from the ¥2.5 trillion reserve fund in the fiscal 2026 supplementary budget for responses to the situation in the Middle East and other matters.
Naito argued for tax cuts rather than subsidies and proposed abolishing the renewable energy surcharge. While referring to the arguments of environmental fundamentalists, he expressed the view that the burden on the public should be eased by ending the renewable energy surcharge.
As another government-related topic, the direction indicated for gasoline subsidies was to raise the nationwide average benchmark price by approximately ¥5 per month from December. The move was reported as intended to reduce the current subsidy burden, with approximately ¥1.4 trillion already spent on gasoline subsidies.