Gasoline prices are going down at the end of the year

Grandpa Nin's Newsletter

Alright everyone, listen up for a moment.
With gasoline prices so high, I've been hearing people everywhere saying, 'I feel heavy-hearted just driving my car...' haven't I?
Well, some big news has just flown in: the 25-yen surcharge known as the provisional tax rate that was added to that gasoline price is finally going away at the end of this year.

The government took action on November 19th, and the bill was passed in the Diet on the 28th.
Since this is a matter that directly affects the lives of everyone from the young to the elderly, Grandpa Nin is going to explain it clearly today, so let's check it out together.

First, let's talk about 'what was decided'

Gasoline tax consists of the actual tax rate and the specially added provisional tax rate (25.1 yen/L).
This surcharge is one of the reasons that has been putting pressure on household budgets for a long time.

And then, November 28th.
Newspapers across the country reported that a bill to abolish this provisional tax rate by the end of the year was passed in the plenary session.
Since this directly affects our daily lives, it's no wonder everyone is surprised.

The reason searches spiked on the 19th and 28th is that the information came out in two stages.

● November 19th: The government solidified its policy (breaking news)
Rumors spread rapidly on news sites and social media asking, 'What's going to happen to the gasoline tax?', and searches spiked for the first time.
After all, car owners couldn't help but check.

● November 28th: Formally passed in the Diet (another big peak)
It was decided—that was the moment, so everyone searched again, asking 'Is it really true?' and 'How much will it go down?'
Young people searched immediately on their smartphones, and older folks heard it on the news, so they all moved at once.

What does it mean that it will be '25 yen cheaper' at the end of the year?

Gasoline prices at the pump fluctuate based on

• crude oil prices

• exchange rates (dollar-yen)

• adjustments by each station

and various other things, but this 25 yen is the tax itself disappearing so it will definitely work in the direction of lowering prices.

By simple calculation, for a household that uses 50 liters every month, that's a saving of 1,250 yen per month.
If you use 100 liters, it calculates to an effect of nearly 2,500 yen per month.

For those in logistics, transportation, taxis, and farming who use a lot of fuel, there must be many voices saying, 'Finally...'

From Grandpa Nin's perspective, this is some rare, bright news for household budgets.
Over the last few years, prices have gone up and gasoline costs have jumped, and I think everyone has been very patient.
On top of that, the abolition of this provisional tax rate is a measure that directly affects our lives, so it will likely be an important turning point.

The search peaks on the 19th and 28th are proof that the public is properly following
the 'day of the announcement' and the 'day of the decision'
—these two events.

When the end of the year comes, every time you fill up, you'll likely feel, 'Oh, it's a little cheaper,' so look forward to it.