PM Sanae Takaichi: Iran Situation Won’t Immediately Affect Electricity, Gas Prices in Japan

The Yomiuri Shimbun

15:39 JST, March 4, 2026

Prime Minister Sanae Takaichi indicated Tuesday that electricity and gas prices would not rise immediately even if the Strait of Hormuz has been shut down due to the situation in Iran.

Takaichi made the remarks during a basic interpellation session at the House of Representatives’ budget committee meeting

As for the power and gas rate subsidy that is set to cover the amount used until the end of March, she said, “We’re not at the stage to decide on an extension.”

The prime minister pointed out that the amount of liquefied natural gas coming to Japan via the Strait of Hormuz is 6% of all the imported LNG.

“[Even if a problem arises in procuring it], we will respond to the situation by increasing supply from other counties and alternative gas sourcing from the spot market,” she stressed. She also explained that the electricity and gas prices are determined based on the imported energy prices from two to four months before.

Asked if she will consider preparing a supplementary budget bill, she said, “The possibility is not zero if it is urgently needed and [the impact] is prolonged.”

Takaichi is scheduled to meet with U.S. President Donald Trump in the United States on March 19.

“I will candidly discuss the issues regarding Iran, too,” she said of the meeting.

The government has so far avoided judging the U.S. attacks on Iran.

“We need more time. We can’t make a legal assessment at the current stage,” Takaichi said.