Surging gasoline prices are posing a problem for governments in Asia where higher energy prices are squeezing household budgets.
South Korea has already taken steps to ensure a steady supply of the key fuel while tracking prices, Japan may soon hand aid to local refiners, and India, the region’s second-biggest oil consumer, has had an unofficial freeze on prices.
“Higher gasoline prices are the most straightforward way for the average guy on the street to feel the effects of inflation,” says Howie Lee, an economist at Oversea-Chinese Banking Corp in Singapore.
“It is also the fastest way to create a spiral of rising inflation pressures. That is why politicians tend to sit up and take notice when gasoline prices rise too aggressively.”
Read the full article HERE.
Add Comment