Japan is considering further steps to help control high fuel price hikes and
minimize the impact on people's lives and economic activities.
Japan's Industry Minister said on Thursday (10/02), due to oil prices
remaining high amid tight supply.
Quoting Reuters on Thursday (10/02) morning, crude oil prices soared to a
seven-year high, driven by concerns over tight global supply and potential
disruptions amid rising tensions in Eastern Europe, triggering a spike in
fuel prices in recent months.
Japan, which has also asked several producing countries to increase output,
launched a temporary subsidy program last month and has since doubled the
amount to reach the 50 yen ($0.4) per liter limit.
"We will consider what measures are most effective from the perspective of
minimizing the impact on people's lives and economic activities," Koichi
Hagiuda told a news conference, but did not say what action would be taken.
The ministry is not considering raising the subsidy ceiling or waving the
gasoline tax trigger clause "at this time," he added.
The 2010 clause aimed to cut taxes on gasoline and diesel when gasoline
prices remained above 160 yen per liter for the third month in a row, but
was frozen to free up earthquake rebuilding funds for the northeastern
region after the devastating 2011 events and tsunami that accompanied the
nuclear crisis in China. Fukushima.
Hagiuda added that Japan would also continue to ask oil producing countries,
such as the United Arab Emirates and the United States, to increase
production to help stabilize oil prices.
Asked whether he would also ask Iran to increase production, he said, "No."
Global investors are closely watching the outcome of the US-Iran nuclear
talks which resumed this week. The deal could lift US sanctions on Iranian
oil and ease global supply tightness.
According to data from Investing.com WTI was down 0.61% at $89.61 a barrel
by 10:55 am EDT and Brent was still down 0.12% at 91.44.