In result of the U.S-Iran war, crude prices are gradually rising day by day. Now Americans reap the repercussions through increased gas, shipping and handling, and flight tickets. The U.S. Postal Service recently stated that it may be necessary to put a temporary 8% fuel surcharge on package and express mail deliveries. This price change will ensure that the actual costs of doing business are covered for the company. Also, this surcharge was less than the charge issued by competitors like FedEx and UPS. The United Airlines CEO, Scott Kirby, said that they need to cut back on running low profit flights as fuel prices jump up. Travelers need to prepare to spend more on tickets in result of higher fuel costs. Additionally, Door Dash and Lyft workers are not able to adjust prices when costs rise, and drivers are feeling the cost of rising gas prices in their paychecks.
Overall, the average price of gas in the U.S has risen to around $4 which is a 33% increase from a month prior. The war is shocking the economy and consumers are less confident about the economy due to jumps in prices and government spending. The government is spending a significant amount of money on the war while cutting funds from millions of U.S. citizens.
https://www.cnbc.com/2026/03/28/oil-doordash-lyft-usps-united.html
It will be interesting to see how the airlines market will be impacted. With less flights and less travel there will definitely be less consumption throughout the economy.
ReplyDeleteCompanies are very quick to raise prices when their cost of production goes up. But never lower prices when cost of production goes down. It makes sense from a business perspective but as a consumer it is tiring. Also interesting to see how fast prices rise and fall. From the time of writing this prices have dropped back down. For now
ReplyDeleteThese are some great points on how crude oil is very dependent on our supply chains and how so many sectors are affected by a single resource. Will businesses start to invest in their capital stock to remove more oil-dependent machines?
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