Ripple Effect Of Oil Prices

Newswise — When oil prices jump, there is no reason for such costs to hit consumers at the pump, said UAB retailing expert Robert Robicheaux, Ph.D. The cost of refining oil does not go up for the major petroleum refineries and marketers. "Oil is but a small part of the total cost of gasoline. It's safe to say gasoline prices are going to climb as the summer driving season races on. Also hard hit are industries that use gasoline for deliveries; that puts a lot of pressure on them to find ways to cut costs." Some transportation companies already levy fuel surcharges to lighten the hit they are taking, he said. "Almost no one is completely isolated from that impact."