The index for fuel oil rose 10.4% in May and soared 64% over the 12 months. The gasoline index rose 5.7% in May and surged 20.8% on a year-over-year basis. The index for natural gas rose 5.6% in May, and was up 16.5% over the last year. * Electricity costs also increased, but less dramatically, edging up 0.9% in May, and rising 5.8% over the last 12 months. As a result, transportation costs increased 2% in May, and jumped 8.1% over the 12 months ending in May. The index for household energy costs climbed 2.8% in May, its fourth consecutive jump, the Labor Department said. The price of food also pushed up overall costs. Food costs increased 0.3% in May, and jumped 5.1% during the 12 months ending in May. The price of milk was a big influence on the overall price, increasing 10.2% over the 12 months, despite slipping 0.7% in May.The cost of clothing was the one area where consumers got some relief. Apparel costs deflated 0.2% in May, and decreased 0.4% over the 12 months.The core CPI, which excludes the cost of food and energy, rose 0.2% in May, compared to an increase of 0.1% in April. A consensus of analysts interviewed by Briefing.com had projected an increase of 0.2% for May.
We also discussed that Soaring oil and food prices are emerging as serious threats to global economic growth, finance ministers from the world's top industrialized nations said Saturday, while vowing to work together to address the problem. The world economy faces uncertainty and inflationary pressures because of the recent rise in prices, the Group of Eight nations said in a joint statement as they wrapped up two days of talks in western Japan. The finance ministers from the Group of Eight nations — Britain, Canada, France, Germany, Italy, Japan, Russia and the U.S. — were also mapping out an agenda for a summit of their leaders next month in northern Japan. They urged oil-producing nations to increase production to help stabilize the spike in oil prices, and called for aid to address a looming food crisis in developing nations. "Elevated commodity prices, especially of oil and food, pose a serious challenge to stable growth worldwide," the statement said. U.S. Treasury Secretary Henry Paulson said the spike in oil prices to new heights was a problem of supply and demand, and not caused by speculators. "This is not something that lends itself to short-term solutions," he told reporters after the meeting ended. G8 concerned over rising oil and food prices around the world
To prove there is no concern for a short term or any solution Saved by Senate Republicans, big oil companies dodged an attempt Tuesday to slap them with a windfall-profits tax and take away billions of dollars in tax breaks in response to the record gasoline prices that have the nation fuming. GOP senators shoved aside the Democratic proposal and argued that punishing Big Oil won't do a thing to lower the $4-a-gallon price of gasoline that is sending economic waves across the country. High prices at the pump are threatening everything from summer vacations to Meals on Wheels deliveries to the elderly. The Democratic energy package would have imposed a 25 percent tax on any "unreasonable" profits of the five largest U.S. oil companies, which together made $36 billion during the first three months of the year. It also would have given the government more power to address oil-market speculation, opened the way for antitrust actions against countries belonging to the OPEC oil cartel, and made energy price gouging a federal crime.
* We also said nothing we do will lower the price of oil including giving the oil companies more work by letting them destroy ANWR which will not get to market for 10 years and do nothing to lower the price of gas and oil! Meanwhile oil companies are making so much money Exxon Mobil Corp. said Thursday it's getting out of the retail gasoline business, following other major oil companies who've been selling their low-margin stations to gasoline distributors. Motorists, however, will continue to see Exxon's Tiger-themed stations and Mobil outlets in their neighborhoods. Already, about 75 percent of Exxon Mobil's roughly 12,000 stations in the U.S. are owned by branded distributors, who buy Exxon Mobil products and pay to use the name. Irving-based Exxon, the world's biggest publicly traded oil company, said it now plans to sell to distributors its remaining 820 company-owned stations and another 1,400 outlets operated by dealers. Exxon Mobil didn't disclose financial details but said the sales will take place over a "multiyear period."
Exxon Mobil is not alone among Big Oil exiting the retail gas business, a market where profits have gotten tougher as crude oil prices have risen. In fact, industry officials say the major oil companies own fewer than 5 percent of U.S. gas stations. Gas prices reached a new record at the pump Thursday, rising to a national average of $4.06 a gallon. Still, station owners say they're struggling to turn a profit on gas because while wholesale gasoline prices have risen sharply in recent months, they've been unable to raise pump prices fast enough to keep pace. Most gasoline retailers long ago got past any illusion they can make money by selling gas. They rely on gas sales to drive traffic to their shops, where they hope auto repairs or food and drink sales will help them turn a profit. Exxon Dumping Stations, Says No Money in Selling Gas
** We know there is no money selling gas! This way they can focus on making grotesque profits and bring average Americans to their knees! What can we and the world do? watch what happens when Iran is attacked!