The price of oil and gas and the impact of the falling value of the pound

[cakeorwine]

Oil is purchased in US Dollars.

The pound has dropped significantly against the US$

£1 = $1.37 last year
£1 = $1.09 yesterday

So no matter if the price of oil falls, we still are going to have relatively high oil prices which links to petrol and diesel prices.

I don't know how this relates to buying gas - but with our currency falling, it's going to cost us more to buy from other countries.

Well the bad news is that fuel/energy is part of the raw cost of making stuff.

So whether it be used in the production of goods (think fuelling tractors for agriculture or heating an oven to bake bread) or moving goods around from the production site to the shop, if you increase fuel costs you are going to increase goods costs.

So it's going to increase inflation.

The good news is it will increase the costs on stuff like ridiculously polluting 4x4 cars which will continue to become ever more unviable to run and eventually get taxed off the road.

So it's not all bad.

@GasPanic these are the kinds of thoughts that are helping me feel sane and make this feel like a 'worthy sacrifice' rather than a sad story.