A bill to scrap the 39-year-old Petroleum Industry Law, expected to be presented to the current Diet session as early as next week, will be the government's final proposal in its 14-year-long effort to liberalize the nation's oil industry, according to a senior ministry official.
The proposed legislation would lift the licensing requirement for companies that wish to enter the oil-refining industry, supply-demand controls and price limits. At the same time, revision of a separate law concerning oil stockpiles will be proposed to allow regulators to monitor production so that they can act quickly in response to emergencies.
If all goes well, the government hopes to put the new rules into force sometime next year.