The price of oil has been dropping from a high of about $147 per barrel to about $100 per barrel.  Many are breathing a sigh of relief, fully expecting the price at the pumps to drop significantly.  Not so fast, say the oil companies.  They still need to recover money lost in the run-up. 

“As oil tumbles, prices at the gas pump come down. But the costs of many other products have not. Procter & Gamble, for example, has raised by 7 percent to 10 percent the prices it charges retailers for items made with ingredients derived from oil. The company is planning to maintain the increase “to recover costs already incurred,” Paul Fox, a spokesman, said.”

“Such decisions will come as little relief for thousands of retailers and wholesalers that have been forced to squeeze margins instead of passing their elevated costs to consumers, who have cut back on consumption of finished goods as their bills for groceries and gas jumped.”
more…

RSS 2.0 Respond Trackback