We've seen the prices of gas per gallon rise by the day based not only on political turbulence and unrest in most of the oil-producing Middle East & North African nations, but also based on market speculation on commodities which drive up the costs for everything from petrol to cotton to oranges.
Today it is over $106/barrel.
** As stated in a previous posting, a barrel of oil is 42 gallons. But since cars don't run on oil, it has to be synthesized into gasoline, and one barrel is actually equivalent to 119 gallons of gas. This comes to 89cents/gallon based on the 3/31 figure of $106/barrel.. but when you add gas company profit, distribution costs and the 45-75cents in taxes the federal, state and local governments place per gallon, you're now paying $3.70/gal and Up
Prices of everyday items from food to clothing is rising too...
From USA Today... "Today, the CEO of Wal-Mart gave this warning- "(Inflation) is going to be serious... We're seeing cost increases starting to come through at a pretty rapid rate." Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers. He predicts prices will start increasing at all retailers in June. "Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory." "