As I do not own a car here in Tokyo, I am somewhat insulated from the rising price in crude oil. Or until the higher price of oil starts filtering its way into the general economy via higher input costs for manufacturers, producers, etc. Like many who work here in Japan, companies cover commutation costs. The monthly bill for me runs close to $225. Let't hope my company will still cover my travel expenses when the higher oil prices pushes up my monthly commutation expense to $350+.
The higher oil prices may discourage families from driving to their next vacation spot but, I really doubt it will affect many here around the metropolitan areas. Japan loves cars. Cars are truly a sign of independence. No need to suffer the painful and crowded mass transportation during the extended holiday periods such as New Years and Golden Week.
Stock picks: watch out for online travel agency companies, there may be pressure on the OTAs over the next 6-9 months so long as oil hovers around the $100+-level. Higher prices at the pump will mean that many consumers will have to cut back on their discretionary spending. Consumers may need to switch from 'premium retailers' to 'big box retailers'.
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