Three Transport Groups in Japan Warn of Diesel Hoarding

Three major transport industry organizations held an emergency rally at the Liberal Democratic Party headquarters on March 28th, urging the government to take action amid growing concern over fuel price increases.

At logistics sites across the country, industry leaders say “unthinkable situations” are already unfolding.

Yoichi Teraoka, chairman of the All Japan Trucking Association: "(Since around early this month) we have been unable to secure sufficient diesel fuel. Notices have been issued calling for cuts of 30% to 50% in supply."

The situation amounts to what the industry describes as “hoarding,” with restrictions being placed on diesel purchases.

Operators also say they are unable to pass on the sharp rise in fuel costs to customers, leaving many businesses facing a severe management crisis.

Takayuki Kobayashi, policy chief of the Liberal Democratic Party: "We will do everything possible to ensure a stable supply of energy, including diesel fuel."

The groups adopted a resolution calling for measures to secure a stable diesel supply and improve the surrounding business environment, and later visited the Ministry of Land, Infrastructure, Transport and Tourism to present the proposal to Minister Tetsuo Kaneko.

As concerns grow over potential disruptions to transportation infrastructure, debate is also emerging within the ruling party over how best to respond.

Some lawmakers argue that the government should reconsider continuing subsidies aimed at suppressing fuel prices.

Taro Kono, former digital minister: "Rather than lowering overall gasoline prices, we should provide direct support to sectors most affected or with the highest priority."

Kono also emphasized the need to promote conservation efforts going forward.

Kono: "We should ask people to switch to public transportation or move work online where possible. I think it is important to encourage everyone to do what they can."

Source: TBS