Petrol-tax politics take consumers for a ride

A political struggle in the Japanese Government over an unpopular petrol tax has impacted on consumers nationwide. First imposed in 1974 as a "temporary" measure, the tax - which added 25 yen per litre of petrol to raise money for roadworks - remained in place until March this year when the opposition-controlled Upper House of the Diet refused to renew it. In a boon to consumers, many service stations reacted immediately to the tax lapse by lowering petrol prices by as much as 17 per cent. However on April 29, Prime Minister Fukuda's coalition used its Lower House majority to force through a bill reimposing the tax. Long queues formed at pumps until the early hours of May 1 as people clamoured for last-minute savings before prices climbed back to their former heights.