About 40% of an oil barrel yields gasoline; the rest generates a variety of other petroleum-based products, according to the Department of Energy. Anything made out of plastic is derived from petrochemicals–chemical products made from petroleum–and therefore, its production depends on the price of that barrel.
Besides delivery charges, the cost of manufacturing certain medical products depends on oil prices. Heart valves, artificial limbs and other kinds of medical equipment contain petroleum-based plastics. Antihistamines, antibiotics, antibacterials, analgesics and many other items found at pharmacies and hospitals use petrochemicals.
Cosmetic And Household Products
Deodorants, soaps and lotions are all made from petrochemicals. Vinyl flooring, floor wax and lots of house-cleaning supplies also contain oil. If manufacturers need to pay more to produce these products, their prices at retail stores will likely increase as well.
It might make sense to buy things online and have items delivered to your front door instead of burning gas on shopping trips. But shipping companies also use planes, trucks, ocean vessels and railroads–all of which require oil. FedEx and UPS make customers pay fuel surcharges in addition to regular shipping costs in order to offset increases in the price of oil.
Unfortunately the items you see in stores don’t grow on shelves. Most products were once on a truck. As gas prices go up, so do delivery costs. Shop owners will offset an increase in costs by charging you more for their goods.
Things That Grow From The Ground
Farmers need fuel to run their tractors. This means you’ll be paying more for fruits and vegetables. You’ll also be spending more to maintain your home landscaping–lots of lawn equipment burns fuel.
Nylon and polyester are made in part from petroleum-based fibers. This means the cost of your workout attire might be affected by the price of oil.
Deutsche Bank analyst Micheal Linenberg recently predicted that to offset higher fuel costs, airlines will be increasing fares and decreasing the number of flights and sale offers. If you are thinking of vacationing anytime soon, book your plane ticket now.
Petroleum-based lubricants–such as transmission fluid, grease and motor oil–are what make your automobile function properly. High petrol prices mean that these materials will likely cost more to produce. When you go to the repair garage, don’t be surprised to see higher fees for maintenance costs.
If you live in a city, then you probably expect to pay a certain rate for using public transport. Increased oil prices will likely affect that fare in the long run.