Japan’s energy importers are warning that the tumbling yen is exacerbating a surge in fuel costs, and may weigh on their bottom line and boost prices for consumers.
While oil prices have slipped from the highs seen earlier from Russia’s war in Ukraine, the sharp weakening in the yen is likely to keep upward pressure on imported fuel costs. The yen briefly breached the ¥125 mark against the dollar on Monday for the first time in seven years.
"The yen becoming weaker is hitting us energy importers because we must purchase fuel with dollars,” said Kazuhiro Ikebe, president of Kyushu Electric Power Co., one of Japan’s regional utilities. "It is extremely worrying.”