Japan government urges shift to Brent from Dubai pricing

Japan's industry ministry has ​asked domestic ​wholesalers to switch to Brent ​crude oil pricing from the Dubai benchmark when setting gasoline prices, in an attempt to contain price ‌rises, ⁠according ⁠to a document seen by Reuters on Friday.

The ​measure adds to the tools that Japan, dependent ​on the Middle East for more than 90% of its oil, has deployed ​it contending with the disruptions ⁠of the ‌Iran war. These have ranged ​from ​the partial release of oil ⁠reserves to considering an intervention on the ​crude oil futures market to ​address the yen's vulnerability.

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The Ministry of Economy, Trade and Industry declined to comment on the document.

Brent crude oil futures are trading around $100 per barrel, cheaper ‌than the Asian benchmark Dubai crude, so switching will limit rises in gasoline prices, the ⁠document says, proposing that wholesalers continue to price off Brent from now on.

Such administrative guidance ​from the government is not legally binding but companies typically comply.