Subsidies

In general, the government does not provide subsidies for diesel sold in Japan. However, the government does waive the consumption tax on biodiesel.

In November 2021, the Ministry of Economy, Trade and Industry announced that it plans to provide subsidies to refiners and importers to cap further increases in gasoline, diesel, kerosene and fuel oil prices. These subsidies, with a maximum limit of JPY 5 (USD 0.043)/liter, would be implemented until March 2022.