Press Conference by Prime Minister ISHIBA Shigeru Regarding Responses to U.S. Tariff Measures

Today I received from the Liberal Democratic Party (LDP) and Komeito proposals on how to respond to the tariff measures being imposed by the United States. The Government takes these proposals from the ruling parties very seriously. As we continue to press forward in our consultations with the United States, within our domestic response measures, we will take all possible steps to provide necessary support while paying careful attention to the impacts of the tariff measures on companies and on people's daily lives. As one example, we will provide support for dealing with cash-flow problems at companies impacted by the tariff measures.

In particular, the Chairs of the Policy Research Councils within both the LDP and Komeito were in full agreement in recommending that the Government work swiftly to implement measures to reduce the price of gasoline and other goods by a fixed amount. In consideration of this, in the near term, until a conclusion is reached on how to handle the tax rates being applied for the time being, or what is often called the former provisional tax rates, and a new system comes into effect, the Government will, as a response to recent cost of living increases, restructure the relief measures to address fuel oil price volatility now in effect, and undertake measures to reduce prices by a fixed amount.

As for the size of these fixed-amount price reductions, it is important that we undertake the reductions swiftly, making use of funds that can be accessed immediately, and that we respond to the current rise in the cost of living. In light of those two points, for both gasoline and diesel fuel, which are subject to the former provisional tax rates, we will reduce the price by 10 yen per liter. If the price of gasoline is currently around 185 yen per liter, it will drop to roughly 175 yen per liter. This means the price will drop to the level it was at immediately after Russia launched its aggression against Ukraine, which was in March 2022.

Also, for both heavy oil and kerosene, which are not subject to the former provisional tax rates, even though prices are currently falling to a point where we will no longer need to provide subsidies, we will lower prices by an additional five yen per liter beyond the recent subsidy levels, with the aim of providing a certain level of support. In addition, we will lower the price of aviation fuel by four yen per liter, as we have until now been providing subsidies for it at roughly 40 percent of the subsidy level for gasoline. We will implement these price reduction measures from May 22, following a notification period of roughly one month.
Now, at the time we transition to the fixed-amount support, if market prices are at risk of fluctuating dramatically after the subsidy begins, then we will instead implement this measure gradually, limiting the amount of each adjustment to roughly five yen, to avoid causing any disruptions in distribution.

Alongside these measures, we will take measures to better handle the summertime, when temperatures rise, acting in the same fashion as we aim to address the current rise in the cost of living. We will provide support for electricity and natural gas bills for the three months of July, August, and September, when electricity consumption increases. We will decide the specifics during May, after monitoring trends in fuel prices and electricity rates and other factors going forward. I will have the Agency for Natural Resources and Energy of the Ministry of Economy, Trade and Industry explain this in greater detail after this. I will end my opening remarks here.

(On whether or not Prime Minister Ishiba has an end date in mind for the 10-yen-per-liter price drop in gasoline beginning May 22)

I won't make any statement at this point in time on what the timing would be for ending these measures, because we are not in a situation right now where an end date can be stated. This matter is also tied to the question of what to do about the so-called provisional tax rates, so I am not in a position to say when we will bring these measures to an end.