Prime Minister Sanae Takaichi has instructed industry minister Ryosei Akazawa to review government subsidies aimed at holding down the prices of gasoline and other fuel oil.

In talks with reporters at the prime minister’s office earlier on Friday, Takaichi noted that some in both the ruling and opposition blocs have urged the government to consider a phased review or an exit strategy for the subsidies due to concerns over the fiscal burden.

“We will consider the matter flexibly, including the amount of subsidies and an exit from the aid program,” she said.

Amid the Middle East turmoil, the government is providing subsidies to oil wholesalers to curb the average retail price of regular gasoline in the nation at about ¥170 per liter. It has considered raising the target price, among other steps, for a possible review of the subsidy program.

The balance of a fund for the subsidies stood at about ¥560 billion at the end of September.…