Edit: Supporting wholesale oil traders isn’t just about reducing gas prices

To counter the rising retail gasoline prices, the government has decided to provide subsidies to petroleum wholesalers as part of the “COVID-19 Emergency Economic Relief Measures”, which will be implemented immediately.

But is this the only recourse? We have our doubts.

Crude oil prices started to rise this year when the epidemic slowed and the economy began to recover. Recently, the nationwide average retail price of regular gasoline approached 170 yen ($1.47) a liter, the highest in 13 years.

To prevent exorbitant prices from negatively affecting the economy, the government will provide petroleum distributors with subsidies of up to 5 yen per liter when the average retail price of regular gasoline exceeds 170 yen.

The subsidy will also apply to kerosene, light oil and heavy oil, and will remain in effect from late December until the end of March.

As a countermeasure against rising gasoline prices, there is a mechanism in place that enables the government to abolish the special tax rate of the indirect tax on gasoline and reduce the tax by about 25 yen per liter.

However, this measure has so far remained frozen to secure funds for projects recovering from the Great East Japan Earthquake of March 11, 2011.

To activate this countermeasure requires a legal amendment, which will take a long time, and the Ministry of Economy, Trade and Industry (METI) is not ready to move forward.

But the support program, METI explains, can be implemented quickly by drawing on emergency funds for the current fiscal year.

However, subsidizing wholesale petroleum traders will not directly lead to lower retail prices. Although METI claims that distributors will be bound by contract to commit to reversing subsidies on their wholesale prices, it is up to individual retailers to set their own after-wholesale prices.

This is because petroleum wholesalers are prohibited by law from restricting the freedom of retailers.

METI plans to check retail prices at about 29,000 gas stations across the country to see if they’re lowering their prices. Although this will cost 15 times more than the amount being spent now, its viability is not guaranteed.

According to the principle of market economy, prices are determined by supply and demand. To control prices by increasing supply, measures that can be taken into account include working in coordination with other consuming countries to urge producing countries to increase their production and benefit from crude oil reserves.

When the media reported last weekend that the government was considering releasing part of its crude oil reserves at government storage facilities, the prices of crude oil futures contracts, which were then at a seven-year peak, began to drop rapidly.

It should also be taken into account the fact that the utilization of crude oil stocks has so far been limited to severe shortages in the post-11 March 2011 range, but short-term arrangements could be explored in coordination with other countries such as South Korea and the United States. (Prime Minister Fumio Kishida announced on November 24 that the government had decided to sell part of its oil reserves.)

Shifting focus to users, it should be enough to strengthen support measures for small-scale fishing operators and carriers with heavy fuel cost burdens as well as people with low incomes.

But even short-term actions to artificially reduce price hikes can delay the nation’s transition to a carbon-neutral society. Introducing carbon pricing to reduce emissions is something to consider.

Any government policy regarding energy prices requires this kind of medium to long-term vision.

– The Asahi Shimbun, November 24

.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos