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Tokyo will approve one more supplementary budget for fuel subsidies before the fiscal year ends in March 2027.
Made
2 Sep 2026
By
Marco Law
Market
Japan
Outcome
Unresolved
The latest 616 billion yen ($3.9 billion) tranche of fuel subsidies accelerates the burn rate of a 2.5 trillion yen ($15.7 billion) supplementary reserve created in June. If crude prices and the weak yen keep pushing import costs up through winter, expect the same May to June 2026 pattern, where reserve exhaustion will be followed by a new emergency supplementary budget before the fiscal year closes in March 2027.
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