Japan's opposition party effectively scuttled a long-standing gasoline tax March 31 in a move that was expected to lead to big price cuts at the pumps but that the ruling party claims will also punch a large hole in government revenues.

Prime Minister Yasuo Fukuda, who had fought for the tax, slammed the opposition Democratic Party of Japan for acting irresponsibly and not offering a viable source of alternative revenues.

"I am very disappointed we could not avoid creating confusion to people's lives," he said at a news conference. "I apologize for this situation."

The showdown over the tax, which expired April 1, has dominated headlines for more than a month. After the tax expires, the gasoline tax will be lowered by about ¥25 per liter from ¥53.8 yen per liter, according to the Finance Ministry.