Japan to Provide Subsidies to Curb Gasoline Prices

Politics Economy

Tokyo, Nov. 16 (Jiji Press)--The Japanese government plans to provide subsidies to oil wholesalers if domestic gasoline prices surpass certain levels, industry minister Koichi Hagiuda said Tuesday.

The financial assistance is aimed at encouraging oil distributors to limit their wholesale prices in order to prevent an excessive rise in retail gasoline prices amid crude oil price surges.

The aid program has no precedent in Japan, according to government officials.

The government plans to include the measure in its economic stimulus package to be adopted on Friday, hoping to start the aid by the end of the year.

"We're looking at a temporary measure of supplying wholesalers with financial resources to curb prices and averting a sharp increase in retail prices," Hagiuda told reporters.

[Copyright The Jiji Press, Ltd.]

Jiji Press