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Japanese gas stations lower fuel prices to avoid crowd on 1 April
By Channel NewsAsia's Michiyo Ishida | Posted: 28 March 2008 2216 hrs

 
 
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TOKYO: Lower fuel prices led to confusion at Japanese gasoline stations on Friday.

A political standoff between the government and the opposition means a fuel levy will expire on 31 March.

But some gas stations are already lowering prices to avoid a crowd come 1 April.

Gasoline prices are expected to be lowered by an average 25 yen or US 25 cents per litre as the Fukuda government failed to pass a bill to extend the so-called special gasoline tax.

One pump attendant at a gas station said that their prices will remain the same until they use up their stock of gas which they purchased with the high tax levy.

The lower gas prices may be good news for consumers but is not too rosy for the government.

That's because the taxes go to a special fund which has traditionally been used to fund the construction of roads.

Many governors all over the country have been demanding that rates be kept in place.

However, the ruling coalition could not gain an agreement from the opposition camp which controls the upper house.

Prime Minister Yasuo Fukuda's ruling coalition said it's committed to pushing through the tax bill after it sits in the upper house for 60 days with two-thirds majority in the lower house.

This means that gas stations all around Japan could be looking at another round of chaos. - CNA/vm

 

 



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