The average retail price of gasoline in Japan fell to 177.70 yen ($1.12) per liter from a record-high 190.80 yen last week, thanks to a resumption of subsidies to cap fuel costs after the Iran war led to surges in crude oil prices, according to Kyodo News.

The average price as of Monday declined from March 16, days before the government restarted state subsidies to keep national gasoline prices down to around 170 yen. It marked the first fall in six weeks, the Ministry of Economy, Trade and Industry said.

The drop reflected the government's support set at 30.20 yen per liter of regular gasoline for the week through Wednesday. For next week, it will provide 48.10 yen per liter, the highest amount since the subsidy program was launched in January 2022, the ministry said.

The ministry has not specified when it will end the subsidies.

The Cabinet decided Tuesday to use 794.8 billion yen in reserves from the current fiscal year's budget for a fund to finance subsidies to curb the rise in prices.

Gasoline prices fell in 46 out of 47 prefectures as of Monday, the ministry said.

The subsidies will also cover diesel fuel and kerosene.

The price of diesel shed 12.40 yen from a week earlier to 166.0 yen, while that of kerosene declined by 154 yen to 2,620 yen per 18 liters, the size of a standard home storage tank.