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Increased oil prices causing businesses to make changes

Date Posted: 2007-11-09

Gasoline prices are on the rise as the cost for crude oil soars to record levels, sending trucking companies scrambling to change routes, improve fuel efficiency, and jack up prices.

Oil products go far beyond cars and trucks, though, impacting many businesses. Laundries and dry cleaners are feeling the pinch, with Marusan Cleaning Shops reporting expenses have dramatically risen 30 million in the first ten months of the year. Marusan says we cant put prices up to customers, so were cutting expenses, like not using plastic bags for wrapping clothes.

Marusan and other laundries use a lot of hangers and plastic bags, plus tons of detergents. Fuels required to power irons and boilers are adding to their costs, and the higher gasoline prices are hurting profits. The pick up and delivery operations require fleets of vehicles traveling throughout the communities being served.

Anshin, a distribution and cargo company with more than 200 large trucks, says its preparing to raise prices. An Anshin official says a simple one yen increase in a liter of gasoline costs his company 1,500,000 a month.

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