Latest news with #subsidy
NHK
11 hours ago
- Business
- NHK
Japan to take extra measure to curb gasoline prices amid Israel-Iran conflict
Japan's government says it will act to curb spikes in retail prices for gasoline that could occur due to the fighting between Israel and Iran. The government says it will subsidize oil wholesalers so that the cost of regular gasoline at the pump will hover around 175 yen, or about 1.2 dollars, per liter even if crude prices surge. It says it will also provide the same level of subsidy for light oil, roughly half of it for kerosene and heavy oil, and about 40 percent for aviation fuel. The government says the arrangement will be in place for some two months from June 26. It says it will use an existing fund to finance the measure. The move comes on top of a fixed-amount subsidy to oil wholesalers already in place. That program began last month to stem gasoline prices and counter rising prices. The amount of subsidy has gradually increased to 10 yen per liter.
Yahoo
a day ago
- Automotive
- Yahoo
China Car Subsidy Halted in Some Areas as Funds Run Low
(Bloomberg) -- China's trade-in subsidy to boost sales of electric and fuel-efficient vehicles has been suspended in key cities across at least six provinces as funds run short and officials scrutinize the prevalence of 'zero-mileage' used cars. Security Concerns Hit Some of the World's 'Most Livable Cities' How E-Scooters Conquered (Most of) Europe JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown Cities in provinces including Guangdong, Henan and Zhejiang have suspended the program, which gives consumers up to 20,000 yuan ($2,780) toward the purchase of a newer model car and had been scheduled to run until the end of this year, according to reports from local media including Dahe Daily. The practice of dealers and traders purchasing new cars in bulk, registering them in order to qualify for rebates, then selling them on the used-car market without ever being driven has added to fiscal pressures and led to probes by authorities, the reports said. Regulators are studying ways to prevent such practices and ensure proper fiscal allocations before continuing to support auto consumption, the Dahe Daily reported, citing people it didn't identify. Authorities said on Wednesday that 300 billion yuan in ultra-long special treasury bonds have been earmarked to support consumption stimulus, including a program for the trade-in of home goods. About 162 billion yuan has been disbursed so far. The program will continue until the end of the year and the central government is guiding provinces to spend the funds in a way that maximizes the policy effect, according to a report by the Securities Times. The cash-for-clunkers program, part of the broader trade-in package aimed at boosting retail sales to support a weakening Chinese economy, has been an important pillar for the nation's car sales. About 70% of personal car purchases in May utilized the trade-in subsidy, broadly in line with the figure for April, according to data from the China Passenger Car Association. The pause to the program adds to growing challenges facing automakers in the world's largest car market. The industry has found itself under growing scrutiny after an extended price war caught the attention of authorities. That includes the Ministry of Industry and Information Technology which, along with two other agencies, convened a meeting with 17 major Chinese automakers in early June to address issues including 'zero-mileage' used cars, Bloomberg News has previously reported. 'These cars came under scrutiny as they're considered a tactic to fraudulently claim the subsidy,' Li Yanwei, an adviser to the China Automobile Dealers Association, said in an interview. Guangdong and Jiangsu provinces started to strengthen the verification of second-hand car sales in May, he said. Some provinces paused their subsidy programs in June, and are re-assessing cars that have had multiple ownership transfers within a short period of time, according to Li. By the end of May, there had been more than 4.12 million applications for the vehicle trade-in subsidy, according to the Ministry of Commerce. --With assistance from Qianwei Zhang. (Updates to add government response in fourth paragraph) Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P.
Yahoo
2 days ago
- Business
- Yahoo
China's $41.8B Consumer Stimulus Is Running Out--What Happens When the Money Stops?
Retail spending in China just got a shot of adrenaline. Thanks to Beijing's trade-in subsidy program, consumers rushed to replace old electronics and home appliances, driving May's retail sales growth to the highest level in more than a year. Some categories clocked in with over 50% year-over-year growth. The stimulus is being fueled by a 300 billion yuan ($41.8 billion) special sovereign bond packagetwice last year's levelaimed at boosting confidence and countering the drag from U.S. tariffs. But local governments are already feeling the strain. Provinces like Henan and Chongqing have run through their allocated budgets, forcing a pause on new applications. Others, including Jiangsu and Guangdong, are throttling access through daily caps. That's raised concerns not just about execution, but sustainability. Just over half of the funds have been distributed or are being processed, but nearly two months after the second tranche was announced, disbursement delays persist. Beijing's fiscal leeway is shrinking as tax revenues fall and debt service costs rise. This year's budget deficit has been pushed to the highest level in over three decades, while bond issuance is up 80% from 2024. Economists warn that while the current consumption boost looks impressive, it may be hard to repeat unless China addresses deeper issueslike household income stagnation and private sector confidence. Some local retailers have even been flagged for possible price inflation to exploit the subsidy scheme, adding more complexity to an already fragile rollout. Still, Beijing isn't giving up on demand-side tools just yet. Beyond consumer subsidies, officials are turning to business-facing policieslike urging electric vehicle makers such as Tesla (NASDAQ:TSLA) to speed up supplier payments, and clearing overdue bills to private firms. These moves won't generate headlines overnight, but they could lay the groundwork for more stable growth in the medium term. In the meantime, analysts expect additional subsidy funding to be pushed through to avoid a sentiment dip. But the bigger question remains: how long can China keep the consumer engine running without reworking the whole system? This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Automotive
- Bloomberg
China Car Trade-In Subsidy Halted in Some Areas as Funds Run Low
China's trade-in subsidy to boost sales of electric and fuel-efficient vehicles has been suspended in key cities across at least six provinces as funds run short and officials scrutinize the prevalence of 'zero-mileage' used cars. Cities in provinces including Guangdong, Henan and Zhejiang have suspended the program, which gives consumers up to 20,000 yuan ($2,780) toward the purchase of a newer model car and had been scheduled to run until the end of this year, according to reports from local media including Dahe Daily.
Yahoo
5 days ago
- Business
- Yahoo
Change to service could help slash 'astronomical' transport bills for West Midlands councils
Calls have been made for a lifeline service to be used to help West Midlands councils reduce "astronomical" transport bills they face every year. Members of the West Midlands Combined Authority's Transport Delivery Overview and Scrutiny Committee discussed proposals for transforming the region's Ring & Ride service. This includes moving to a new operating model and increasing fares for the first time since April 2017. READ MORE: Major change to the price of bus passes and fares coming in the West Midlands - this is when But committee member Councillor Robert Alden said one way of providing a more comprehensive Ring and Ride service would be for it to pick up some Home to School Transport trips. As well as boosting the service, he said it would also ease the financial burden faced by local authorities across the West Midlands. Demand for Ring and Ride services is growing steadily with figures showing 2,487 unique customers have taken a trip in the last six months. Bosses said the last week of March was the busiest since the start of 2020 when the service was hit by Covid-19. The authority still provides a subsidy of £6.467 million per year to run the service but this is a far cry from 2010/11 when its budget was around £12 million. A report to the committee said fare income brings in around £250,000 per year and this is reinvested into the service. Are car headlights too bright? Councillor Alden said: "All of our councils have huge Home to School Transport bills that place significant financial pressures and cost astronomical amounts. "There must be a way to operate this service that also picks up some of that Home To School Transport services across the region so there can be cross subsidisation. "Councils can make a saving on their budget and can also help underpin the finances of Ring and Ride and allow for a more comprehensive service across the region that helps everyone." Catherine Moore, Ring & Ride and Demand Responsive Transport Manager, said: "We have explored this. "We will continue to explore it but the problem is the times don't always work when the Ring and Ride wish to travel and the Home to School Transport children. "We have explored these conversations and we actually feel there might be some benefit from the Community Transport side we could perhaps further develop over the next few years."
