Surging gasoline prices are posing a tricky new problem for governments as they seek to nurse virus-hit economies back to health.
In Asia, South Korea has taken steps to ensure a steady supply of the key fuel while tracking prices, and Japan may soon hand aid to local refiners. India, the region¡¯s second-biggest oil consumer, has had an unofficial freeze on prices for almost two months ahead of elections in several key provinces.
¡°Higher gasoline prices are the most straightforward way for the average guy on the street to feel the effects of inflation,¡± said 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.¡±
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