According to Bloomberg News, energy costs were increasing even before the commencement of the Russia Ukraine war. With the ongoing war and bans being imposed on the import of Russian oil, the crude is seen skyrocketing, surging prices for everything right from the cost of kids’ toys to the cost of Uber rides.
Oil prices are now more than $110 per barrel, after escalating as high as $130 per barrel at the beginning of this month. The average cost of US gas has crossed $4 per gallon and is close to $6 in California, the most expensive state.
This implies that the cost of heating your home is greater than filling your vehicle. But aside from these pain points, the surge in the price of crude is expected to make the other areas of your life more costly than the average customer.
Since oil impacts the crucial sectors of the economy like plastic manufacturing and shipping, no industry is immune to the change. A post lockdown revival in demand for fuel coupled with a never-ending war, the need for fuel, according to experts, the price of oil will continue to surge.
Following are how higher oil prices will impact the wallet of consumers.
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Transportation
Even if you do not have your car, how you travel daily will become expensive. Escalating ride costs means that ride-sharing firms will increase their fees to maintain profits.
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Groceries
According to Bloomberg News, one United Nations index 2011 is at an all-time high. The average cost escalated by 28% in 2021, which is more than in one decade. Global food costs surged to a record high in February, up by more than 50% since mid-2020.
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Online Shopping
Now you cannot afford to do stress buying after a tedious day’s work. This is because just as manufacturers have to pay a higher price for getting raw materials, the price of the products will likely increase, and the shipping costs might add up to the total price of the product.
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Vacation
The last two years have confined people due to pandemics, and Americans have deferred their travel plans. However, with most of the population across the globe being vaccinated and due to the subsiding cases of Covid worldwide, people would like to start traveling again. The airline capacity across the world towards the end of 2021 was 31% in 2019, which rose by 47% in 2022.
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Homes
Bloomberg News reports rising fuel costs, it is becoming difficult for ordinary people to heat their homes.
