Japan to scrap highway toll cap, may hurt fuel demand

TOKYO, June 9 (Reuters) - Japan will scrap a 1,000 yen ($12) ceiling on weekend highway tolls on June 19 as the government seeks funds to rebuild after the earthquake in March, operators said on Thursday, a move that could keep drivers off motorways and hurt sales of gasoline.

The government introduced the system, which caps weekend tolls for passenger cars at 1,000 yen regardless of the distance driven, in March 2009, prompting drivers to head out on the highway for road trips that would normally cost far more money. Highways also became a cheaper alternative to Japan's bullet trains for family travel.

That boosted motor fuel demand and helped drive two straight years of increases in gasoline sales, which had been in a four-year slump hurt by the country's aging population and growing popularity of fuel-efficient vehicles.

But Japan is looking to secure funds for reconstruction after the massive magnitude earthquake and tsunami that hit the northeast on March 11, and local media have said scrapping the weekend toll cap, as well as a planned weekday ceiling, will save the country 250 billion yen ($3.1 billion) a year to put towards rebuilding.

The government has also decided to abandon the planned weekday cap, which would have limited tolls to 2,000 yen for passenger cars, the highway operators said. It had planned to introduce the scheme in April but never implemented it in the wake of the disaster.

To facilitate the recovery, however, the transport ministry said it would make about 1,540 km (960 miles) of highways in northeastern Japan free for those affected by the disaster for one year starting June 20. Trucks and buses that help in reconstruction and the transport of goods to the northeast can also use those highways for free from June 20 until the end of August.

Japan's highways are among the world's most expensive, with trips of more than 70 km (44 miles) exceeding 2,000 yen, while a 400 km (250 mile) trip from Tokyo to Osaka would run about 15,000 yen without toll caps. ($1 = 79.945 Japanese Yen) (Reporting by Osamu Tsukimori; Editing by Chris Gallagher)