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Saturday, May 14, 2022

The way that Crude Costs Influence Retail Prices

Costs Interacting in many ways. 

Gas Prices Raise Costs In 8 Surprising Ways

Bryan Pearson in CustomerThink 

There’s a reason the price of chewing gum is up 7% from last year, and it’s not all related to supply and demand. It turns out that chewing gum is a crude habit, regardless of personal opinion.

The average 42-gallon barrel of oil historically has produced nearly 20 gallons of gasoline and four gallons of jet fuel, according to Earth Science Week. That leaves 18 gallons for other uses, from making plastics and paint to asphalt and ammonia. And yes, to make some candies and gum.

Many of these other uses for petroleum affect the operating costs of retailers and the brands they carry well beyond the length of a gas pump. From product ingredients to the containers that carry the products to the light needed to read the labels, petroleum and natural gas are necessary through virtually every step of the path to purchase. 

Fuel For Thought: 6 Ways Crude Boosts Retail Prices

Thousands of everyday products spring from petroleum today, thanks to chemists who have been – for more than a century – exploring new uses for it. So when the price of a barrel nears $100, the ripple effect is extensive. Here are six ways through which the ripples reach consumers in the retail industry.  ... 

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