Everyone in the US has realized by now that we are experiencing a period of massive inflation. Key among these prices is the HUGE jump in gas prices. This would be expected normally during a period of inflation, however, there are other things driving the gas price increase as well. This article will touch on how these gas prices may hurt your pockets at more than the gas pump.

With the increase of both Gas and oil, diesel fuel is going right along with regular gasoline. Most people know that the majority of Supply Chain Commercial Vehicles operate on larger, diesel engines. The majority of trucks can hold around 200-300 gallons of diesel fuel (including both tanks) and with today’s average diesel fuel price of $5.56 (a record high), the gas bill per fill-up could easily soar over $1,000. With a small increase in fuel, many times supply chain companies and large corporations would simply take the hit. With this large of an increase, things are rapidly changing and contributing to the inflation.

The majority of products used by US consumers are transported by commercial vehicles to their respective destinations, and this is especially true with supermarket and superstores. As said before, while a small increase in fuel prices would likely show little to no reflection of prices of products, a jump as major as this is a different story. To be able to afford to continue to make enough money to run the business, companies will have to charge more for their products just to keep up with transportation costs. For companies using logistics brokerages, they will have to start putting more money on the loads, as the carriers will start charging more to transport said loads. While they may be able to limit the price hiking by negotiating with carriers, it will still be felt in your wallet. Both types of companies, large and small will have to start charging more for everything from food to technology to hygiene products.

I’ll even give you an example. Say you use only a certain type of cotton blend t-shirt. You are loyal to this brand and this brand only. They make a good product for a fair price and don’t try to upcharge you on the shirt. Let’s say the shirt is make on the west coast and you live on the east coast. In addition, let’s say the company imports the necessary products to make the shirt from outside the US. The gas prices aren’t just a US problem, so it will cost them more to import the products. Once they manufacture it, they’ll have to ship it across the US. By that time, they’ll likely have to pay more to a carrier to ship it, as the carrier needs more money for gas. Once it hits the shelf, it could $0.50- $1.00 more than what it originally is.