Why Does the Price of Oil Affect Everything Else?

From Groceries to Plane Tickets — Here’s the Real Reason

Have you ever noticed that when oil prices go up, suddenly everything seems to get more expensive?

Groceries. Bus fares. Plane tickets. Even your Grab ride.

But what’s the connection? You’re not buying barrels of oil at the petrol station — so why does your whole life get more expensive when oil does?

Let’s unpack this in plain English.

Oil Isn’t Just Fuel — It’s Everywhere

First, we need to understand that oil isn’t only for fueling cars or planes. It’s the lifeblood of the modern economy.

Here’s where oil is hiding:

• Transportation (fuel for cars, trucks, ships, airplanes)
• Farming equipment and fertilizer
• Plastic packaging
• Manufacturing processes
• Even heating and electricity in some countries

In other words: when oil gets expensive, the cost of producing and moving almost everything goes up.

Transportation 

Farming equipment

How It Spreads: The Ripple Effect

Let’s say the price of oil jumps.

🚚 Transportation Costs Go Up

When oil prices rise, fuel costs follow — and that hits transport first.

• Delivery trucks now need to spend more just to stay on the road.
• Airlines face higher jet fuel costs, which means flight tickets climb.
• Even your online shopping isn’t spared — the "last mile" delivery (getting the package from warehouse to your door) becomes more expensive too.

🌾 Farming Becomes More Expensive

Oil quietly powers a lot of our food system.

• Farmers rely on tractors and machinery that run on fuel.
• Fertilizers? Many are made using oil-based chemicals.
• Once crops are harvested, they have to be transported — more fuel again.

So when oil prices spike, your basic groceries take a hit, even if they don’t look “oil-related” at all.

🏭 Manufacturing & Packaging Costs Rise Too

Oil isn’t just about fuel — it’s also used to make stuff.

• Think of plastics: containers, wrappers, bottles — they often start from petroleum.
• In some parts of the world, factories still use oil as an energy source.

So if you’ve ever wondered why prices go up across the board — from snacks to soap — rising oil might be the hidden culprit.

All of these increases eventually show up on… your receipt.

Real-Life Example: The Grocery Bill

Imagine a loaf of bread.

• The wheat needs to be grown (fuel, fertilizer).
• Then it’s harvested and sent to a bakery (fuel).
• Then packaged in plastic (petroleum product).
• Then delivered to your supermarket (fuel again).

When oil prices spike, every stage gets more expensive, and so does your bread.

But… Don’t Governments Control Prices?

Sometimes, yes. Some countries subsidize fuel to reduce the impact. Others use strategic oil reserves to stabilize prices.

But global oil is traded like a commodity — and prices depend on:

• Supply and demand
• Geopolitics (wars, sanctions)
• Natural disasters
• Decisions by big oil-producing nations (like OPEC)

So while governments can help soften the blow, they can’t stop the wave entirely.

Final Thought: Oil Is Like Dominoes

When oil prices rise, it’s like pushing over the first domino. It may start with fuel, but soon everything else starts tipping — from shipping to shelves to your wallet.

The good news? As oil prices stabilize or drop, the reverse can happen — though often more slowly.