Japan's largest petroleum wholesaler Eneos Holdings has dismissed its president for inappropriately hugging a woman at a social gathering while drunk.

The company announced the dismissal of President Saito Takeshi on Tuesday, saying a whistleblower informed it of the incident in late November. An investigation by Eneos Holdings verified the allegation.

It said Executive Vice President Miyata Tomohide will take over from Saito until it has chosen a new executive lineup.

The company decided at its board of directors meeting on Tuesday to dismiss Saito and advised Executive Vice President Yatabe Yasushi, who also attended the gathering, to step down. Yatabe, who is in charge of the company's compliance, reportedly resigned in response.

Eneos Holdings also decided on a three-month, 30-percent pay cut for Senior Vice President Sunaga Kotaro, who was found to have made inappropriate remarks to the woman at the same gathering.

In August last year, the firm's then Chairman Sugimori Tsutomu resigned for sexually harassing a woman tending customers at an eatery.