Japan Intends Compensating Oil Producers to Curb Hike in Domestic Gasoline Prices

MOSCOW (Pakistan Point News / Sputnik - 17th November, 2021) The Japanese government mulls introducing subsidies for oil producers to put a cap on domestic retail gasoline prices amid the ongoing global surge in oil prices, Industry Minister Koichi Hagiuda said.

"We're looking at a temporary measure of supplying wholesalers with financial resources to curb prices and averting a sharp increase in retail prices," the minister was quoted as saying by the Japan Time newspaper on Tuesday.

As of November 8, gasoline cost around 169 Yen (nearly $1.

5) per liter, and the threshold of 170 yen per liter would equate a 13-year record high.

If the record is hit, the government aims to provide oil wholesalers with subsidies of 5 yen per liter, the outlet said, citing sources. The measure could be expanded to other petroleum products, including kerosene and diesel.

The aid package is expected to be in effect from late December 2021 until March 2022, according to the NHK broadcaster.