Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:20 to 9:27 a.m.
Friday, June 20, 2025
Press Conference Room, METI Main Building

Opening Remarks

Announcement of the Price Negotiation Promotion Month follow-up survey results

We implemented the Price Negotiation Promotion Month campaign this March, and today, we will announce the results of the follow-up survey of this campaign.

Regarding price negotiations, the percentage of companies that answered that they negotiated prices after receiving a proposal to do so from the order-placing side has increased by about three percentage points from the previous survey’s level to 31.5%, which implies that it is becoming easier for the order-receiving side to negotiate prices. The price pass-through rate has also increased by about three percentage points from the previous survey to 52.4%.

However, the percentage of companies that answered that they could not raise any prices to reflect increased costs reached nearly 20%, in contrast to the companies that answered they successfully implemented a price pass-through. Moreover, for public procurement, respondents to the survey made comments indicating that the order-placing side did not accept any price negotiations or price pass-throughs for the reason that they have budget constraints. Improvements need to be made on this point by the related government ministries and agencies.

Based on the survey results, we will persistently implement measures to ensure fair transaction practices across supply chains, including raising the awareness of the Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields, which will be enforced next January, and of the basic policy on public procurement-related price negotiations and price pass-throughs.

The administrative staff will give a briefing on the details later.

Question-and-Answer Session

Acquisition of U.S. Steel by Nippon Steel

Q: Nippon Steel officially completed the acquisition of U.S. Steel. What is your perception of this deal and what is your view on its impact on future Japan-U.S. tariff negotiations and direct investment in the United States? Could you share with us your thoughts on these?

A: As I directly said to Chairman Hashimoto, Vice Chairman Mori and President Imai of Nippon Steel yesterday, I would like to express my respect for the efforts made up to now by Nippon Steel.

I think Nippon Steel’s investment in U.S. Steel will help both the Japanese and U.S. steel industries enhance their ability to create new innovations and also help the two countries deepen their partnership. I have strong expectations for their realization. I also think that it symbolizes an investment that contributes to the improvement of the global investment environment. As for the impact of the acquisition on Japan-U.S. tariff negotiations, I will refrain from making comments with prejudgment. At any rate, the Government of Japan will continue to proactively engage in tariff talks with the U.S. side.

Measures to address fuel oil price volatility

Q: Let me ask you about the new price hike mitigation measures to be introduced next week on June 26. The measures will be implemented against the possible surges in crude oil prices that might be caused by the increased tension in the Middle East, but some may criticize the measures, saying that providing energy subsidies is against a shift to decarbonization and is also financially problematic as a substantial amount of budget has already been allocated to the subsidies. However, I think that the measures will be implemented by making effective use of the existing fund without the need for new budget allocation. Minister Muto, you have said before that energy subsidies should not be continued eternally. Could you share with us your present view on the subsidizing project, which has multiple aspects?

A: For fuel oil, such as gasoline, in response to the recent rise in the cost of living, we have been reducing the prices by a fixed amount and will continue to do this until a conclusion is reached on how to handle the so-called provisional tax rates and actions are taken based on this conclusion. In preparation against possible surges in petroleum product prices that might happen if disorder in the Middle East continues, we have decided to implement precautionary measures to mitigate drastic changes in fuel oil prices for the period from July to August, during which demand for gasoline and other fuels will expand, thereby ensuring that people’s daily lives will not be badly affected by the price rises, and to this end, we will make effective use of the money left unused in the fund during the period from April to May.

Specifically, for the retail price of gasoline, in addition to reducing the price by a fixed amount, we will implement new measures from June 26 to ensure that the national average price will not suddenly rise above the current level of 175 yen per liter, which is the level right around the time of the start of the Ukraine crisis.

As I have said before, fuel oil subsidies should not be continued eternally, in consideration of the trends toward decarbonization and green transformation (GX). The subsidies will continue to be provided until a conclusion is reached on how to handle the provisional tax rates and actions are taken based on this conclusion, and it is my understanding that going forward, discussion on the provisional tax rates will be held also from the perspective of decarbonization.