Download the price is steep9/28/2023 However, owing to factors such as the increase in the burden of working capital in the period up to the time at which the costs are passed through, there are calls for the related systems to be revised.īased on monthly public statistics on prices of crude oil and petroleum products and other items in recent years, in this paper I examine industries such as those manufacturing and selling petroleum products and manufacturing industries consuming large amounts of energy. In addition, with regard to issues such as domestic tariffs in regulated industries such as power utilities, there are measures such as a fuel cost adjustment system, which permits changes in fuel and raw material costs to be passed through automatically after a certain period. Nevertheless, in regard to the pass-through of these increases in energy-related costs to the price of goods and services, some observers hold the view that given the supply-demand structure of the market, there has been inadequate price pass-through. Under the impact of continuously sharp rises in crude oil prices since 2005, the Japanese economy has been facing severe increases in costs such as those related to energy.
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