Japan abolishes the provisional gasoline tax rate (special rate) — effective 31 December 2025
Source material is a Japanese government announcement (in Japanese); this page is a summary.
On 31 December 2025 Japan amended the Act on Special Measures Concerning Taxation to abolish the special rate (the so-called provisional rate, totalling 53.8 yen per litre) of the Gasoline Tax and Local Gasoline Tax on gasoline, lowering it to the statutory rate (totalling 28.7 yen per litre).
Key facts
| Effective date | 31 December 2025 (Reiwa 7, 31 December) |
|---|---|
| Legal basis / responsible body | Amendment to the Act on Special Measures Concerning Taxation / National Tax Agency (国税庁) |
| Covered taxes | Gasoline Tax and Local Gasoline Tax (gasoline) |
| Rate change (per kilolitre) | Provisional rate 53,800 yen → statutory rate 28,700 yen |
| Add-on removed (per litre) | 25.1 yen (the provisional portion) |
| Diesel | Provisional rate of 17.1 yen per litre, on track for abolition on 1 April 2026 |
| How prices reflected the change | Prices came down gradually before the abolition as the fixed-amount fuel subsidy was expanded in stages |
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An amendment to the Act on Special Measures Concerning Taxation in December 2025 abolished the special rate (the provisional rate) of the Gasoline Tax and Local Gasoline Tax charged on gasoline. The rate fell from the provisional rate of 53,800 yen per kilolitre to the statutory rate of 28,700 yen per kilolitre, removing the provisional portion of 25.1 yen per litre. However, the Agency for Natural Resources and Energy had already expanded a fixed-amount fuel subsidy in stages before the abolition to prevent sharp price swings, so retail prices did not drop by 25.1 yen all at once on the day of abolition. The provisional rate on diesel (17.1 yen per litre) was announced as being on track for abolition on 1 April 2026.
Background — why this change
The provisional rate (the 'for the time being' rate) started in 1974, when an add-on was introduced to the Gasoline Tax and related taxes on gasoline to secure funding for road maintenance. This measure removes that add-on and returns the rate to the statutory rate.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
Summaries reflect national-level programs. Municipal (city/ward/town) programs may differ — confirm with the official desk before applying.
FAQ
Did gasoline prices fall by 25.1 yen on the day of abolition?
No. According to the Agency for Natural Resources and Energy's Q&A, to prevent distribution disruption from sharp price swings, the fixed-amount fuel subsidy in place since May 2025 was expanded in stages from mid-November (reaching 25.1 yen, the same level as the provisional rate, on 11 December). As a result, a price reduction equivalent to the provisional rate had already been achieved before the abolition, so retail prices did not fall sharply all at once on the day of abolition.
Was diesel abolished at the same time?
The provisional rate on diesel is part of the diesel oil delivery tax (軽油引取税) and comes to 17.1 yen per litre; according to the Agency for Natural Resources and Energy, it is on track for abolition on 1 April 2026. The National Tax Agency page on this abolition of the special rate covers gasoline (Gasoline Tax and Local Gasoline Tax).
Is the rate different in Okinawa?
According to National Tax Agency materials, gasoline and similar products shipped from a manufacturing site inside Okinawa Prefecture are taxed at a reduced rate: 46,800 yen per kilolitre under the provisional rate and 24,900 yen per kilolitre under the statutory rate.