⛽ Gasoline Tax Abolished! ~¥25/L Cheaper

❓ What's changing?

The provisional gasoline tax, in place for about 50 years since 1974, was abolished on Dec 31, 2025, cutting gasoline tax by about ¥25.1 per liter. The ¥17.1/L provisional tax on diesel ends April 1, 2026. Prices don't crash on the abolition day: from Nov 13, 2025 subsidies were widened every two weeks, so gasoline reflected the cut from mid-December and diesel from late November. The base fuel tax (¥28.7/L) and consumption tax remain.

👥 Who is affected?

• ●Anyone filling up a private car or motorbike with gasoline
• ●Travelers touring Japan by rental car
• ●Diesel car and truck users (from April 2026)
• ●All consumers affected by delivery and logistics costs

🌏 Impact on foreign residents

For foreign residents in car-dependent rural areas, monthly fuel costs will clearly ease—around ¥1,000 saved per 40L fill-up. Travelers touring Japan by rental car also pay less at the pump. But pump prices also move with crude oil and exchange rates, so you may not always feel the full ¥25 cut. Note the diesel cut only starts in April 2026.