"A 10% increase in the priceof fuel leads to an average 4% increase in the costs of a carrier.It is clear that profit will decline because the market cannotrespond positively and cover the costs. Our clients cannot affordto increase shelf prices so we cut margins. Under thecircumstances, and considering that the past three years have notbeen good for carriers anyway, many will not make it on themarket," said Lucia Apostol, transport manager atDumagas.
She said fuels account fornearly half of the company's costs.
"We are the most affectedwhile at the same time being the main driver of a country'seconomy. An average of 45% of overall costs are accounted for byfuel costs. If this percentage rises any further, I think manycompanies will end up on the bankruptcy list," said the Dumagasrepresentative.
The executive manager ofDunca Expediţii company, Constantin Daminescu, shares the sameview, saying his company's profit margin is 1 to 5%, so fuelbecoming more expensive affects the company directly.
International Lazăr Companycarrier, too, says all companies were already having a difficulttime, and that the increase in the price of fuels will lead to aprofit decline.
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