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For instance, about 2/3 of the oil supply in the United States is used for transportation, which makes sense when one considers that every consumable good must travel from the point of production to the point of consumption, usually with many steps in between. A 1% increase in fuel prices results in a 0.4% increase in freight costs (exponentially), thus a 10% rise in fuel prices would correspond to a 40% rise in freight costs. An increase in freight costs would cause an increase in price for goods. By far, transportation (automobiles, air travel, etc.) is the most directly impacted industry by increasing oil prices brought about by dwindling supplies...
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