GB519 Decision Making and Measurement: Unit 5 Discussion
Just because there is an economic downturn does not mean that consumer prices will fall. Even though gas prices might plummet, it does not necessarily equate to lower gas prices as experienced by consumers at the gas pump (Emerson, 2012).
Fuel oil prices have remained high from 2013–2015. Industry forecasts do not indicate declining fuel prices in the near future. According to forecasts, fuel prices will remain near or above $3.00 per gallon well into 2016 (http://www.eia.gov/petroleum/gasdiesel/).
In the global economy fuel prices can affect many other aspects of daily living including food prices. Country governments in pressuring energy companies to provide more bio-diesel fuel which relies on corn has subsequently exacerbated a shortage of this food item which in turn has driven prices of corn up (Rice, 2011).
Emerson, L. (2012, March 11) Higher gas prices affect prices of other consumer goods. The Augusta Chronicle. Retrieved from http://chronicle.augusta.com/news/business/local-business/2012-03-11/higher-gas-prices-affect-prices-other-consumer-goods
Rice, T. (2011). Biofuels are driving food prices higher. The Guardian. Retrieved from http://www.theguardian.com/global-development/poverty-matters/2011/jun/01/biofuels-driving-food-prices-higher
The state of food and agriculture. (2008).Food and Agriculture Organization of the United Nations. Retrieved from http://www.fao.org/docrep/011/i0100e/i0100e00.HTM
U.S. Department of Energy. (2015, October 26). Gasoline and diesel fuel update. Retrieved from www.eia.gov
Post to the Discussion per your Syllabus guidelines.