Soaring Oil Prices Seen Forcing 25 Pct of Transport Firms into Red

Tokyo, March 19 (Jiji Press)–A 30 pct jump in fuel costs amid surging oil prices could force 24.6 pct of transport companies in Japan to suffer operating losses, according to a survey by Teikoku Databank Ltd. If regular gasoline prices rise from 177 yen per liter to 230 yen, transport companies, including bus and taxi operators, are estimated to see their annual expenditures increase by an average of 14.11 million yen, lowering their operating profits by over 80 pct, according to the research firm. “Some companies could be unable to continue business” due to the difficulty of passing higher costs onto customers, said a Teikoku Databank official. Across all industries, operating profits are estimated to fall about 5 pct, according to the survey of about 90,000 firms nationwide. Higher fuel costs are also expected to hit hard the mining industry, which uses diesel-fueled heavy machinery, and the accommodation industry, which uses boilers for large baths. END [Copyright The Jiji Press, Ltd.]