The wave of soaring fuel prices is likely to hit Japan’s Golden Week holiday period hard. Airlines across Asia are beginning a rush of price increases. Korean Air announced on the 16th that it will raise fuel surcharges added to airfares for tickets issued from April 1st.
Flights such as Gimpo to Haneda and Incheon to Narita will become approximately 3,800 yen more expensive. Cathay Pacific Airways will nearly double its fuel surcharge from the 18th. Qantas, Thai Airways, and Malaysia Airlines have also raised their prices. Air New Zealand plans to cut approximately 1,100 flights by May.
On the other hand, Japan’s JAL and ANA plan to keep prices unchanged for tickets issued from April to May. This is because they are calculating fuel surcharge prices based on data from before the deterioration of the situation in Iran.
However, there is a possibility of significant price increases for tickets issued from June onwards, including the summer holiday period. New factors that are accelerating the rise in crude oil prices are also emerging. Fuji TV’s Deputy Commentary Committee Chairman, Yuichi Tomoda: That’s the weak yen. The yen is on the verge of reaching 160 yen, and the momentum of the weak yen shows no signs of slowing down.
Crude oil is basically traded in dollars. If the yen continues to weaken, the amount of yen needed will increase, pushing up the prices of imported goods even further. Our lives are increasingly likely to be hit by a double whammy of high crude oil prices and a weak yen. Domestic tourist destinations cannot avoid the impact either.
In Matsuyama City, Ehime Prefecture, the “Dogo Onsen Festival” starts on the 19th. The “Dogo Prince Hotel,” which provides a free shuttle service, says that fuel costs will increase by about 90,000 yen compared to February. Princess Travel Chairman, Hiroshi Kawachi: If we stop this, it will lead to a significant decline in service. It will have a big impact on the company’s costs, but we have no choice but to endure it for a while. Furthermore, the impact of high crude oil prices is also on construction sites.
A housing manufacturer interviewed by “It!” uses insulation materials and special sheets to create highly airtight houses that feel like being inside a thermos. And what is indispensable there is… Cleverly Home’s Managing Director, Fumiya Kikuma: Naphtha is used in insulation and sheets.
The covers for the ventilation fans on the outside of the house, and even this drain manhole, are made from naphtha. Naphtha is a liquid obtained during the refining process of crude oil. It is a raw material for petroleum-related products such as plastics, and 70% of Japan’s imports come from the Middle East.
Naphtha is also used in adhesives for tiling and in the wiring cords that run throughout the house. Regarding the impact on housing prices, Cleverly Home’s Managing Director, Fumiya Kikuma, said, “We still have inventory, so I don’t think there will be a sudden price surge, but if the closure of the Strait of Hormuz continues for a long time, it may have an impact in the future.” The impact of high crude oil prices is still not in sight.
