Japan to cut tariffs on oil imports

Japan will further cut tariffs on imported crude oil as well as finished products from April 1, in line with a plan first announced in December 2005, a source at the country’s finance ministry said. The tariff on gasoline will be reduced to 995 yen(US$10.59) per kiloliter (kl) from 1,056 yen (US$11.24) per kl. The price and schedule have not been changed since the government decided them in 2005, the source added. “Japan’s tariffs were too high and we decided to lower them to appropriate levels after considering the price gap between domestic and overseas markets [for oil products],” the source said. The ministry has been reducing tariffs gradually to moderate the impact on the struggling domestic oil refining industry. The 170 yen (US$1.81) per kl tariff on crude oil was scrapped in March 2006. (March 30, 2010)