中東情勢悪化で高騰続くガソリンへの補助金…一律補助の“公平性”に疑問の声も　財政負担増加の裏で専門家は「変革のきっかけにすべき」【サンデーモーニング】｜TBS NEWS DIG

A review of gasoline subsidies has begun. What exactly is the mechanism behind gasoline subsidies? ■Countries with subsidies have prices more than double that of Japan; subsidies make Japan the cheapest in the G7 Subsidies are in place to boost gasoline prices due to the worsening situation in the Middle East. The amount of the subsidy is set to keep the retail price of regular gasoline around 170 yen, currently standing at 33.3 yen. Without the subsidy, the price of regular gasoline would be around 203 yen. So, is the current price of 170 yen for gasoline in Japan high? Compared to other G7 countries, France's price is 389 yen, and Italy's is 381 yen. These countries bear a significant burden of carbon taxes aimed at reducing carbon dioxide emissions, resulting in prices more than double that of Japan. On the other hand, thanks to subsidies, Japan's gasoline is cheaper than that of the oil-producing United States, making it the cheapest in the G7. [G7 Regular Gasoline Prices] *Yen/1L (Calculated at 1 USD = 160 JPY, Tradingeconomics, May) France: 389 yen Italy: 381 yen Germany: 373 yen United Kingdom: 342 yen Canada: 221 yen United States: 189 yen Japan: 170 yen ■Even for refueling a Ferrari? The "fairness" of a uniform subsidy Furthermore, this subsidy is paid to the oil companies, so it is already deducted when the gasoline is sold at gas stations. Therefore, any car can benefit uniformly. Former Foreign Minister Taro Kono pointed out that "there is no need to lower the price of gasoline used to refuel Rolls-Royce and Ferraris with financial subsidies (X, May 31)." A simple calculation shows that the fuel efficiency of a top-of-the-line Ferrari production model is said to be 6.5 km/L. On the other hand, the most fuel-efficient kei car, the Suzuki Alto, is said to get 28.2 km/L. If you were to drive 500 km, the Alto would require approximately 17.7 L and would receive a subsidy of 589 yen, while a Ferrari would require approximately 76.9 L and would receive a subsidy of 2,561 yen. Furthermore, there is a question of whether it is fair to provide the same subsidy to people who need a car in rural areas and to people who can live without a car in urban areas. ■The ballooning financial burden of gasoline subsidies: What happened during the last oil shock… The gasoline subsidy program began in March. The fund that provides the subsidy initially had a balance of 1.16 trillion yen, but at this rate, the fund is projected to be depleted by the end of July. Therefore, the supplementary budget passed on the 5th included 2.5 trillion yen in "reserve funds for responding to the situation in the Middle East, etc." to allow the gasoline subsidy to continue, but at this rate, the financial burden will only continue to balloon. Takahide Kiuchi, Executive Economist at Nomura Research Institute, points out that "Japan promoted energy conservation following the 1970s oil crisis, thereby strengthening its industry and economy." During the previous oil crisis, there were no gasoline subsidies like the current one, and the government urged people to refrain from using private cars and to conserve energy even in company vehicles. ■Expert: "This should be a catalyst for change" Amidst this, Honda developed a clean engine for the Civic, achieving a low fuel consumption of 17 km/L. This became the number one most fuel-efficient car in the US for four consecutive years, and, boosted by the oil crisis, became a global hit. Following this, Japanese automakers successively produced energy-efficient cars, building their current position. Kiuchi of Nomura Research Institute says, "This time too, we should use this as an opportunity to transform the structure of our economy and society into a flexible, sustainable, and strong one." ▼TBS NEWS DIG Official Website: https://newsdig.tbs.co.jp/ ▼Subscribe to our channel [Easier access to the latest news]    / @tbsnewsdig   ▼NEWS DIG Latest News [Important information close at hand] https://www.google.com/preferences/so... ▼Submit information here: "TBS Insiders" https://www.tbs.co.jp/news_sp/tbs-ins... ▼Submit video here: "TBS Scoop Submission" https://www.tbs.co.jp/news_sp/toukou.... #news #TBS #newsdig