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Hanoi motorbike taxi driver Nguyen Van Hung, 42, said he had to raise his fare by 1,000 dong (5 cents) per kilometer after the government boosted gasoline prices by 10 percent to a record high earlier this month. "My customers just walked away when I told them I had to raise the fare," said Hung, who earns about $5 a day and supports a family of four. "They said they could not afford that much." Even if the most recent data suggest inflation remains largely in check, Asia may still be hurt by the recent surge in oil prices since it can take months or years for higher energy costs and tighter monetary policies to work their way through an economy, said Sean Darby, chief global equity strategist with Jefferies in Hong Kong. "Well after the oil shock occurs, the economy will still be impacted," Darby said. South Korea, Taiwan and Thailand are the biggest net crude importers relative to the size of their economies while India
-- with trade and government deficits and an inflation rate at 6.6 percent in January
-- is in a weak position to absorb higher energy costs, analysts said. Another worry is that higher oil prices will force countries that subsidize consumer fuel costs
-- such as India, Indonesia and Thailand -- to spend more on crude and less on other public expenditure that could help economic growth. China raised gasoline prices 3.3 percent last month to equal a record high of 9,380 yuan per liter ($4 a gallon), but China has in the past been able to absorb increases. Since 2003, gasoline prices have nearly tripled while the country has averaged growth of about 10 percent a year. "Asia has shown in recent years that high prices are not a barrier to the region's continued rapid economic growth," said Daniel Martin, Asia economist with Capital Economics in Singapore. But if prices jump because of a supply disruption from a violent conflict over Iran's nuclear program while the global economy slows, the impact on Asia would be worse than, say, a scenario in which prices rise more gradually because Europe has stabilized and the global economy and oil demand are growing faster.
[Associated
Press;
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