Japan approves $3 bn spending to help with energy bills

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TOKYO: The Japanese government officially approved 513.5 billion yen ($3 billion) in emergency spending on Tuesday to shield households from skyrocketing electricity and gas bills driven by the ongoing war in the Middle East.

The critical financial relief will fund a temporary subsidy program stretching across three months, specifically targeting peak summer usage from July through September. 

Deputy Chief Cabinet Secretary Masanao Ozaki announced the cabinet decision, emphasizing that the state is moving aggressively to ensure geopolitical market turbulence does not disrupt everyday citizens' livelihoods or national economic stability.

Like many Asian economies, Japan relies almost entirely on fuel imports from the Middle East to meet its energy demands. The emergency package was drafted specifically to counter domestic price spikes caused by the volatile Strait of Hormuz blockade, which has heavily choked regional oil and gas supply chains.

The utility intervention follows a broader economic announcement by Prime Minister Sanae Takaichi, who unveiled plans for an additional $19 billion supplementary budget to stabilize consumer markets and tackle the soaring costs of everyday goods nationwide.