Quote: They aren't going to eat the cost of higher gas prices, they pass it on to the business that they are transporting for, who passes it onto the consumer. On a story about American Airlines yesterday on FoxNews, the head of American said that for every $1 a barrel increase in oil prices, they have $1billion higher operating expenses. Obviously they are using a whole lot of fuel, but the same logic transfers right over to the trucking/shipping/train industries too.
I work in the rail industry, and for every cent in increase in fuel, our operating costs increase $18 million dollars.
Granted, we pay considerably less than retail prices. In fact if I told you the wholesale price of our refined diesel fuel you'd probably [censored] your pants. Of course you get a pretty good discount when you're secondin the world only to the US Navy in fuel consumption.
There's another problem... the corporations that use the most gas, and therefore are the biggest influencers in driving the price up, pay the least, shoving the burden onto consumers.
