TOKYO - Japan's government will raise the cap for gasoline subsidies and replenish state reserves by compiling an extra budget to cushion the economic blow from rising raw material costs, a draft of its planned relief package obtained by Reuters showed on Friday.

"The government must be vigilant to the impact that recent yen falls could have on households and importers," said the draft of the package, which is expected to be announced by Prime Minister Fumio Kishida's administration next week.

(Reporting by Takaya Yamaguchi, writing by Leika Kihara Editing by Chang-Ran Kim)