Yes, but the economies of scale of cargo transport generally mean that the percentage of the total cost attributable to fuel cost is usually pretty small.
Take bananas, for example. If they cost $0.70 per pound at the store, how much fuel could have been used getting a pound of bananas from the plantation to the port, shipped from that port to a port in the United States, then from that port to a distribution center, then to the store? So what would doubling the price of fuel do for the price of bananas?
With more expensive items, shipping (and therefore fuel) is an even lower percentage of the total input costs.
The price of goods will go up with the price of fuel, but not as much as a lot of people seem to assume.
Yes, but the economies of scale of cargo transport generally mean that the percentage of the total cost attributable to fuel cost is usually pretty small.
Take bananas, for example. If they cost $0.70 per pound at the store, how much fuel could have been used getting a pound of bananas from the plantation to the port, shipped from that port to a port in the United States, then from that port to a distribution center, then to the store? So what would doubling the price of fuel do for the price of bananas?
With more expensive items, shipping (and therefore fuel) is an even lower percentage of the total input costs.
The price of goods will go up with the price of fuel, but not as much as a lot of people seem to assume.