Just as the economy appears to be showing signs of improvement, more unrest in oil producing countries is causing crude oil prices to sharply increase. The increase doesn’t just hit consumers in the pocket at the gas pumps – it causes prices for everything to rise due to transportation costs. Farmers pay more in fuel costs to grow food, more to transport it to the processing plants, then the plants pay more to transport products and so on and so on, with the bottom line being that consumers pay more in the end.
Gas stations raise prices for fuel before they ever buy any at the higher rates. As soon as something happens to cause crude oil prices to increase stations raise the prices they charge for what is already in their tanks. If you notice, they are never quite as quick to lower those prices as they are to increase them.
With economists already warning that over the next months consumers can expect steep price increases in everything from food to clothing having to fork over more money for gas now and for who knows how long is going to hurt even more.
It may be time for people to give up the pretty green lawns they have and plant some vegetables instead. Think about it.