Key Facts
• Extraordinary Diet session starts on August 1, 2025.
• Gasoline tax surcharge of 25.1 yen per liter to be abolished by year-end.
• Ruling and opposition parties reached agreement on gasoline tax reform on July 30.
• Opposition parties consider a no-confidence motion but delay submission due to timing concerns.
• Internal division in the ruling party: anti-Ishiba faction vs. pro-Ishiba faction.
• Anti-Ishiba faction cites three consecutive election losses as grounds for resignation.
• Pro-Ishiba faction argues resignation would create a political vacuum amid economic challenges.
• Ishiba plans to decide on his future after the Senate election review in late August.
• Party meeting on August 8 may see calls for Ishiba’s resignation.
• Public opinion polls show mixed views on Ishiba’s continuation as prime minister.
Summary
The extraordinary Diet session starting August 1, 2025, will address key political and economic issues. A major focus is the agreement to abolish the gasoline tax surcharge by year-end, reflecting a shift in ruling party strategy after election losses. Meanwhile, internal divisions within the ruling party deepen, with factions debating Prime Minister Ishiba’s future. The anti-Ishiba faction demands his resignation due to electoral failures, while his supporters argue for stability amid economic challenges. Ishiba has indicated he will decide on his future after the Senate election review in late August. A party meeting on August 8 could further escalate tensions. Public opinion remains divided, adding complexity to the political landscape.
