Japan's government is considering submitting a supplementary budget for fiscal 2026 to mitigate the negative impact of rising crude oil prices on the economy and people's livelihoods, Kyodo News reported on May 11, 2026.
According to government sources, the proposed supplementary budget is expected to focus on fuel price support measures, including subsidies for transportation, agriculture, and fishery businesses—sectors most affected by oil price volatility. The government is also considering extending previously implemented retail gasoline subsidies.
This move comes amid persistently high global oil prices driven by geopolitical tensions and tightening supply, which have sharply increased Japan's energy import costs. The supplementary budget preparation signals Prime Minister Kishida's administration prioritizing inflation control and short-term economic growth support.
The draft supplementary budget is expected to be submitted to Japan's parliament in the coming period, with its scale and specific expenditure items to be announced after cabinet approval.
