The indirect costs of rising fuel prices

UC economist explains diesel's impact across sectors

WLWT recently reported that the conflict in Iran is sharply raising gas and diesel prices.

The outlet turned to Debashis Pal, David Sinton Professor of Economics at the Lindner College of Business, for a look into how expensive gas can have costly effects across economic sectors. 

"The price families pay for fresh produce will go up by 10% to 15%," Pal told WLWT. He said that this is because diesel fuel is used to transport many goods that people buy every day, and small surcharges for shipping costs can pile up. 

"[Families] might cut back on eating out. They might cut back on buying stuff," he added. "The indirect effect will settle in if it continues."

See the full report on WLWT

Featured image at top of a person refueling a car. Photo/Unsplash

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