Japan mulls subsidies to mitigate sharp rise in gasoline prices

FILE PHOTO: General view of the Negishi LNG Terminal, which is jointly operated by Tokyo Gas and JERA, in Yokohama, Japan October 17, 2019. Picture taken October 17, 2019. REUTERS/Yuka Obayashi

TOKYO (Reuters) - Japan's industry ministry said on Tuesday it is considering a temporary and emergency measure to mitigate a sharp rise in gasoline prices by providing oil refiners with subsidies to allow them to cap wholesale prices.

The consideration of rare subsidies comes just days after a U.N. climate deal called for an end to "inefficient fossil fuel subsidies".

The measure is aimed at supporting the nation's economic recovery from the pandemic-induced slump, an official at the ministry told reporters, adding that such a step has not been taken in the past.

The ministry aims to halt the increase in the retail prices of gasoline, diesel and kerosene by lowering their wholesale prices through the use of the funds provided by the government.

It did not indicate at what level prices would be capped.

(Reporting by Ritsuko Shimizu, Writing by Yuka Obayashi; Editing by Kirsten Donovan)

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