Expensive Oil Drives up All Prices

(07/19/06 -- RALEIGH) (WTVD) -- As rockets shoot through Lebanon and Israel, the cost of oil is soaring and driving up prices of other products.

"Aluminum cans become more expensive," said Dr. Mike Walden, an economist at N.C. State University. "Anything made with plastics becomes more expensive."

Materials that take a lot of energy and oil to produce are on the rise. That includes anything made with aluminum, plastic, glass, steel, metal and lumber. Furniture distributors have already ordered price hikes for items already on showroom floors.

"It's going up about 10% across the board," said Michael Lashley, co-owner of Raleigh's The Oak Store.

He is trying to absorb as much of the increases as he can, but does not know how long he can hold out.

"We're feeling it on the bottom line, but we haven't had to raise prices yet," Lashley said. "But it will be coming soon."

While price hikes are on the way for furniture, they are already here for other materials. Nancy Krimm oversees the steel division at Dillon Supply Company. She changes prices twice a month.

"Nothing is immune from price increases," Krimm said.

The hikes on raw materials are passed on to builders and then consumers, which means you will be paying more for everyday items packaged in aluminum or plastic and anything made with steel, metal, or glass.

Economists say there is good news in all of this. High energy prices are motivating companies to find ways to be more energy efficient. In the long run, that should eventually help control costs - - even if oil prices continue to soar.

Get more News »

• Email
• Print
• Report a typo
•