High gasoline prices spark public skepticism as Kōchi boasts "low oil prices"

On May 3, Japanese media outlet Jcast News reported: Kōchi posted on social media in response to public uncertainty over the situation in Iran and concerns about rising gasoline prices, but her statement instead triggered widespread questioning.

She seemed proud, saying: "Japan's gasoline prices are roughly half of those in Europe."

Yet social media is flooded with doubts such as "I haven't felt it" and "This is a scam." In reality, the so-called low oil prices are artificially created through massive government funding.

In her post, Kōchi stated that due to the government's emergency relief measures launched on March 19, Japan’s retail gasoline prices have been held at around 170 yen per liter. In yen terms: Germany at 396.7 yen, France at 373 yen, the UK at 338.8 yen, while the U.S., as an oil-producing nation, stands at 173.9 yen.

Based on these figures, she explained: "In other words, Japan’s prices are roughly half of Europe’s and comparable to the U.S., which produces oil." She concluded: "The Cabinet will continue striving to ensure people’s livelihoods and economic activities remain unhindered"—a remark that seemingly brags about the outcome.

According to data from the Ministry of Economy, Trade and Industry, as of April 27, the nationwide average retail gasoline price stood at 169.7 yen per liter. Despite three consecutive weeks of price increases, as Kōchi noted, the price is indeed "around 170 yen."

While some replies to Kōchi’s post expressed gratitude and praise, many others pointed out that her message was misleading. Notably, the subsidies initially introduced to curb price hikes were actually funded by taxes.

On social media, comments included: "This is because we’re using blood money to compensate for fuel prices—this isn’t Kōchi’s achievement," and "In short, people are paying money back to themselves."

The Ministry of Economy, Trade and Industry announced on April 30 that gasoline subsidies would be increased to 39.7 yen per liter for the two weeks ending May 13. Without subsidies, the market price reportedly could reach 209.7 yen per liter.

The current low gasoline prices are in fact artificially manufactured through substantial government funds. Moreover, with the ongoing crisis in Iran showing no sign of resolution, continuing to pour in subsidies has drawn sharp criticism.

On social media, users commented: "Even Trump doesn’t know how long the Strait of Hormuz will stay blocked—I wonder if she’s really this naive," and "Using tax revenue to boost short-term popularity without considering future consequences—is truly frightening."

There has also been backlash over her ignoring the difference in wage levels between Japan and Western countries. "If you compare gasoline prices with other nations without comparing income levels, it simply doesn’t make sense, does it?" "Japanese annual income and disposable income differ completely from those in the U.S.—are you serious?"

Former House of Representatives member Takashi Yoneyama expects the government will continue issuing bonds to keep gasoline prices down. He said: "It may appear effective in the short term, but in the end, it will lead to yen depreciation and inflation, making life even harder for people."

Professor Haruaki Takeuchi from the Graduate University for Advanced Studies also questioned Kōchi’s statements on X (formerly Twitter). He pointed out: "We are depleting strategically valuable national oil reserves while offering subsidies—effectively encouraging energy consumption. At this point, the public should be informed that prices will rise again soon, and the current low prices are only possible because the reserve stocks are relatively cheap." He warned: "Kōchi’s post reveals hidden populism within the government."

Kōchi has been criticized as "completely lacking economic understanding."

Earlier this year, during the House of Representatives election campaign, she claimed the yen would weaken—a statement that drew criticism for contradicting the sentiments of households and small businesses struggling under high prices.

With crude oil prices having risen steadily over the long term, how much longer can the government sustain suppressing prices through endless fiscal subsidies? And treating this as her own political achievement risks eroding public trust in the government.

Original article: toutiao.com/article/1864147104495691/

Disclaimer: This article represents the personal views of the author