Press Conference by Minister Akazawa (Excerpt)

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

6:21-6:37 p.m.
Friday, November 7, 2025
Press Conference Room, METI Main Building

Opening Remarks

Phased increase in subsidies to abolish the provisional gasoline and diesel fuel tax rates

Regarding the so-called provisional tax rates on gasoline and diesel fuel, the six ruling and opposition parties agreed this week, on November 5, that the tax surcharges on gasoline and diesel fuel be abolished on December 31, 2025, and April 1, 2026, respectively, as a measure to swiftly help the public cope with inflation. In accordance with the agreement, the Ministry of Economy, Trade and Industry (METI) will increase subsidies for gasoline by five yen every two weeks, starting next week on November 13. In other words, the gasoline subsidies will rise from the current 10 yen to 15 yen on November 13, then to 20 yen on November 27, and finally to 25.1 yen on December 11, matching the provisional tax surcharge. For diesel fuel, the subsidies will also increase every two weeks from 10 yen to 15 yen on November 13, then to 17.1 yen on November 27, aligning with the provisional tax surcharge. To minimize confusion in distribution, including delayed consumer purchases and the resulting rebound in demand, as well as the strain on the distribution network during the busy winter season, METI will today ask wholesalers and gas station operators to cooperate on securing stable distribution systems and leveling out inventories. METI will also endeavor to widely publicize its measures among consumers through various media, including the official publicity channels of the Government of Japan. At the same time, I have also instructed the administrative staff to examine measures that provide cash flow support to small and medium gas station operators, who are more likely to be affected by the removal of the provisional tax surcharges, as part of the Comprehensive Economic Measures. Please ask the administrative staff for further details.

Question-and-Answer Session

Securing rare earth supplies

Q: Prime Minister Takaichi expressed her intention yesterday to explore concrete ways to cooperate with the Government of the United States on developing rare earth resources in the waters around Minamitorishima Island. The Governments of Japan and the United States signed a document at the Japan-U.S. summit meeting concerning measures to secure rare earth supplies. Rare earths are also included among critical minerals, which have been designated as one of the 17 strategic areas defined by the Headquarters for Japan’s Growth Strategy. Please share your thoughts on the significance of the Japan-U.S. cooperation on rare earths, as well as the direction of future measures.

A: The core of Prime Minister Takaichi’s growth strategy is crisis management investment. Critical minerals, including rare earths, are also among the strategic areas for crisis management investment. The government and the private sector of Japan will join forces to proactively promote strategic investments, addressing various risks and societal issues, including economic security. Currently, the supply of rare earths relies heavily on imports from certain countries. From the economic security perspective, the Government of Japan will work to secure stable supplies of rare earths by diversifying its supply sources and strengthening national stockpiles to prepare for supply disruptions. The leaders of Japan and the United States recently signed an agreement on a framework to strengthen the supply chains for critical minerals and rare earths in both countries by supporting mining and smelting projects. In partnership with the United States, Japan will pursue concrete initiatives, including the development of new supply sources. In addition, as part of the rare earth development project in the waters surrounding Minamitorishima Island, the Cabinet Office plans to conduct a field test to extract rare earths from a water depth of approximately 6,000 meters in January 2026. I understand that Japan and the United States will look into specific ways to cooperate going forward. The Government of Japan will thus steadily work to secure stable supplies of rare earths by diversifying supply sources through collaboration with the United States, among other measures.