It certainly has made it to the pump, but what I wonder is if it will reduce other prices? I guess if a company has been charging a specific fuel surcharge, they will have to reduce or eliminate that. But what about companies that just raised their prices to cover increased transportation costs? If they reduce their prices to reflect the much lower price of fuel, that will help consumers. If they don’t reduce their prices, that will help their bottom line and indirectly may help our struggling economy.
One specific example I have encountered is the price of birdseed. A 25 pound bag of sunflower chips was priced last year at $22.00. A couple of months ago I bought one at $36.00! I asked about this and was told that the increase was a result of higher diesel cost for the farmers running their farm machinery and the higher cost of transporting the seed to market. I wonder if the price will come down if fuel prices stay the same through the next growing season.
Of course the significant lowering of oil prices has immediate benefits to us, but there is also a long term worry I have about it. What are your opinions? Do you think we and our elected officials will become complacent again just like we did years ago? Will the call for alternative fuels and better fuel economy for our vehicles fade into a distant memory if oil prices stay around $50 or $60 per barrel? Will this reduction in oil prices be reflected in lower prices throughout our economy, rather than just at the gas pump?