It seems everyone is grumbling about filling up their gas tanks nowadays. However, I hear little discussion about the effects higher gas prices will have on the cost of goods. Many of the basic ingredients of life are transported via gas guzzling trucks.
How long before we see the increase cost of shipping passed on to the consumers?
I started noticing the increase in the price of groceries a number of months back. The prices on produce are absolutely unbelievable. I’m paying $7.99 for a watermelon, and they are in season. Apples are approaching $1.00 each. And grapes are $4.99 a lb. Cherries have never become reasonable; they are $4.99 to $5.99 a lb. Lemons and limes are still .45 apiece, the same as this winter. I went to visit my son in New York (Astoria in Queens) a couple of weeks ago and we went to the small local produce markets. The prices were about 1/3 less. A friend said her garage mechanic told her that he would have to raise his estimate for some repairs because the cost of parts had gone up due to transportation expense. I live in Maine and we depend on tourists so I’m worried that they won’t want to make the long trek up here with the price of gas so high. Our small town is struggling as it is. Although I’m not reconciled to U.S. gas prices being this high, the Canadians come across the border all the time to buy gas because at these prices it’s still cheaper than what they have to pay, about $1.09 a liter last time I looked.
I don’t think it will be hidden much longer as some independent truckers are talking sitting at home rather then driving already. Right now some costs are being absorbed by the trucking industry that will not and cannot go on for much longer. I don’t forsee a strike, but some are calling for one sometime in October, if that happens and it sticks for a few weeks, you can expect to see prices on everything you buy, jump.
I’m trying to avoid the whole “Americans still pay less” ordeal. The bottom line is the price per barrel is up on the world market, what your government does after that is your buisness.
It costs more to ship goods.
I’m suprised at how little discussion on this subject there is. I see it as the most important issue with oil. While you are complaining about prices at the pump just think about 3 years from now when the price of milk is $10 a gallon. (The farmer, living in a rural area, has an enormous dependance on cheap transportation of resources. In additon, he pays for heat, electricity for irrigation, and I’m sure countless other areas are effected by the cost of oil).
In theory, won’t the rise of oil prices cripple our economy and force a more local restructuring?