Document shows that the Japanese government has asked wholesalers to switch from Dubai to Brent pricing.

According to a document obtained by on Friday, the Japanese industry ministry has asked domestic wholesalers "to switch to Brent crude oil prices" from the Dubai benchmark when setting gasoline prices. This is an effort to limit price increases.

This measure is one of many tools that Japan, which depends on the Middle East to provide?more?than 90% of its oil needs, has used in order to deal with the Iran War disruptions. The measures?have included releasing a portion of oil reserves and considering an intervention in the crude oil futures markets to combat the yen’s vulnerability.

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

The document states that Brent crude oil futures is trading at around $100 per barrel and is cheaper than the 'Asian benchmark Dubai crude. Switching?will limit increases?in gasoline price, it says. It suggests that wholesalers continue to?price off Brent starting?now.

Companies 'typically' comply with such administrative guidance. Reporting by Tamiyuki Kihara, Additional reporting by Nobuhiro kubo and Yoshifumi takemoto; Writing by Katya golubkova, Editing by William Mallard

(source: Reuters)