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OK, so I was "getting it" that gas prices go up, everything oil related goes up, hence delivery costs go up, hence everything else goes up in price, like say produce, esp in the country where trucks deliver basically everything.
I GET IT.
Why in the world than petrol dropped down by 50% by now, logically telling me that delivery costs dropped down - yet, dam produce costs only go up and up? Or, heating costs go up?
Why do I start hearing Putin's voice, when about a month ago he unleashed major investigation into pricing scams in Russia, when he said - WHY is it that oil prices dropped down by 40% yet petrol prices went up by 20%?
Obama? Any word on similar situation here?
Has produce gone up? You aren't likely to see produce drop in price until the lower oil prices get factored in; which should take a season or so.
Heating costs have gone down and are usually influenced by nat gas prices, not oil.
In Russia there are multiple factors at play that determine the final gas price. In particular, excise taxes and the price freeze. Last I heard they were increasing the excise taxes again and they removed the price freeze.
OK, so I was "getting it" that gas prices go up, everything oil related goes up, hence delivery costs go up, hence everything else goes up in price, like say produce, esp in the country where trucks deliver basically everything.
I GET IT.
Why in the world than petrol dropped down by 50% by now, logically telling me that delivery costs dropped down - yet, dam produce costs only go up and up? Or, heating costs go up?
Why do I start hearing Putin's voice, when about a month ago he unleashed major investigation into pricing scams in Russia, when he said - WHY is it that oil prices dropped down by 40% yet petrol prices went up by 20%?
Obama? Any word on similar situation here?
Petrol?? Are you talking about the UK or the USA? In the USA, gasoline, diesel and heating oil costs have dropped a long, long way. Natural gas prices are also dropping. Coal is also having problems because of the abundance of other cleaner fuels.
You mentioned the cost of produce. Again are you talking about the UK or the USA? If you are asking about produce prices in the USA, I wonder if you are living in some sort of vacuum. Have you never heard about the drought in California? I saw it in person a few months ago. Very scary. Since then there has been some rain. It is too early to tell about next year because irrigation depends mainly on the amount of snowpack in the mountains. If the drought continues you can not only expect prices to increase but many items will become scarce or not available at all.
when commodities were soaring we were saved by cheap over seas labor. that held prices.
now commodities have fallen but labor is much higher. we are ceasing to manufacture our castings in china for our products as there is only a tiny price advantage left since wage inflation is so high there.
There are other factors involved, like the drought that dictate the price of produce. As for airlines, I think they are still charging as much as they are because they are engaged in a volatile industry and perhaps, they figure that demand for airfare is relatively inelastic. Also, if consumers are spending less on gasoline, it logically follows that the opportunity cost associated with purchasing gasoline also diminishes, at least in regards to disposable income.
There are other factors involved, like the drought that dictate the price of produce. As for airlines, I think they are still charging as much as they are because they are engaged in a volatile industry and perhaps, they figure that demand for airfare is relatively inelastic. Also, if consumers are spending less on gasoline, it logically follows that the opportunity cost associated with purchasing gasoline also diminishes, at least in regards to disposable income.
Airfare has gone down though. As to why it hasn't gone down as much as one might expect, I'd argue that this is because there are too few airlines for real competition to bring the prices down.
As you'd expect, most of those are based on diesel. Farms us diesel. Trailers use diesel. Trains use diesel. Diesel hasn't really gone down tremendously.
Specifically with airlines, most were going bankrupt so there's a lot more going on in the industry than just changing fuel prices.
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