Japan Pushes for Brent Crude to Curb Gasoline Price Surge

Japan's industry ministry is urging wholesalers to shift from Dubai to Brent crude oil pricing to help curb rising gasoline prices. This move, amid disruptions from the Iranian conflict, is part of Japan's strategies to stabilize the economy and manage its heavy reliance on Middle Eastern oil.

Japan's industry ministry has called on domestic wholesalers to switch their pricing strategy from Dubai to Brent crude oil. The initiative, aimed at addressing rising gasoline prices, is detailed in a document reviewed by Reuters on Friday.

As Japan relies on the Middle East for over 90% of its oil, the ministry's new measure seeks to mitigate economic vulnerabilities exacerbated by the Iran conflict. Previous measures included partial oil reserve releases and considering intervention in the crude oil futures market. However, the Ministry of Economy, Trade and Industry has yet to publicly comment on the document.

Currently, Brent crude oil futures are priced around $100 per barrel, more affordable than the Dubai benchmark, thus supporting governmental efforts to control gasoline price increases. Although not legally binding, such governmental guidance typically garners compliance from companies.

(With inputs from agencies.)