07/06/2008

Oil hike sparks serious concern

Energy ministers are meeting in Japan a day after a record one-day jump in the crude oil price, to $139 a barrel. Under pressure from the US, Japan, China, India and South Korea have agreed on the need to end fuel subsidies, blamed for boosting demand. But correspondents say there are major differences over the speed and extent to which the changes should be made. The soaring cost of oil is causing growing strain to economies around the world, with some governments facing protests and other pressures from consumers and businesses. Both the Indian and Malaysian governments have recently raised fuel prices in order to cut the subsidies they provide. Officials and ministers from the Group of Eight (G8) key industrialised nations, as well as China, India and South Korea, are meeting for two days in the northern city of Aomori.