Monday, January 6, 2014

How Important Are Fuel Prices?

Material used in manufacturing is often created using fuel: Mining, logging, farming, etc. The material is then SHIPPED (using transportation fuel) to a manufacturing plant. The finished product is then SHIPPED (using transportation fuel) to a distribution center, where it is then SHIPPED (using transportation fuel) to a store, where you DRIVE (using transportation fuel) to the store to get it, or you order it online, in which case it is SHIPPED (using transportation fuel) to you.

Someone has to pay for all this fuel. Guess who?

Without transportation fuel, the world as we know it stops functioning. With expensive fuel, more of the economy's resources have to be spent on shipping rather than the material or products themselves.

With inexpensive fuel, more economic activity can happen, more goods are created, more goods are delivered, and it is all less expensive. The result: Everyone has a higher standard of living all over the world.

What will make fuel less expensive? Competition.

No comments:

Post a Comment