Gasoline spot prices have risen. This is due to expectations of an economic recovery, which have attracted buyers.
Japan has Golden Week and a ¥1,000 increase in expressway tolls, so all the factors that could lead to a rise in gasoline prices are in place.
The concern now is how long this increase in gasoline prices will last. Airlines have revised their flight schedules. Due to the recession, many people are refraining from going out altogether. Additionally, there’s the swine flu scare. Right now, it’s not a good time for car sales either. While many may have thought “now or never” during Golden Week, hybrid cars are gaining momentum as a replacement for conventional gasoline cars.
Speaking of other things that use oil, there are plastics, trucks, and ships. Trucks are struggling, as mentioned in the article. Manufacturing industries are consolidating their factories, so there seems to be a limit to future growth. Ships are not expected to move much either. Plastic demand hasn’t been particularly strong recently.
In terms of demand, there is a slight seasonal bias, with some demand related to moving. Another factor is Yamato Transport’s new repair service. If it takes off, it could be quite effective, but do electronic devices really break down that often?
So, the oil industry is facing challenges, but given the number of employees it has had until now, it’s likely to decline further if changes aren’t made. It’s a real test of endurance.