Japanese Prime Minister Sanae Takaichi has directed Industry Minister Ryosei Akazawa to review the country’s gasoline subsidy program, a government source confirmed Friday. This move follows Takaichi’s earlier remarks suggesting that the scale of fuel assistance could be scaled back.

The subsidy scheme was initially introduced as a temporary measure to counteract rising fuel prices triggered by the outbreak of conflict between the United States, Israel, and Iran in late February. Speaking to reporters in Tokyo, Takaichi emphasized the government’s intention to carefully consider proposals from both ruling and opposition parties regarding a gradual reevaluation of the program.

In particular, Takaichi highlighted the need to develop an “exit strategy” for the subsidies while closely monitoring their impact on Japan’s fiscal health. The prime minister’s comments suggest a focus on balancing support for consumers with prudent fiscal management as the geopolitical situation evolves.

The review comes amid ongoing concerns over the economic effects of the Middle East conflict on global energy markets and the challenges governments face in mitigating price volatility without exacerbating budget deficits. Japan’s government appears poised to adjust its fuel subsidy approach in response to these complexities.