Petrol & Katrina Impact Wide Array of Product Costs

Complacency is not recommended for the U.S.the majority of plastic resins manufactured by
consumer this winter according to forecastersU.S. factories are located along the Gulf Coast.
who say that a wide range of products fromInitially, the factories were shut down during the
food to auto parts will see rises in retail prices.storms. Secondly, the factories require natural gas
While food prices have risen over the pastto generate the power needed to run the plastics
decade, the impending costs will be different, asfactories. And thirdly, due to the short supplies of
they are expected to be the largest at one timethe raw materials or resins used in the
over the past several years and not only due tomanufacture of plastic, the three most common
the cost of delivering goods but because of thetypes have increased in price between 20 and 30
overnight escalation of the cost of producingper cent to date since August 2005, with another
plastic.And not dissimilar to the blame game whichprojected 8 per cent increase by the end of
was played from Louisiana to Washington, D.C. inNovember 2005, according to Plastics News, a
the aftermath of Hurricane Katrina, we now seetrade publication.Dow Chemical Co., for example,
the corporate sector using Katrina to advantagewhich runs a plastics factory outside of New
as well. First, we had the oil companies blamingOrleans, LA in Hahnville, LA, was forced to cancel
the price of gas at the pump on the price of a1,000 contracts after Hurricane Katrina, including
barrel of oil, then blaming Katrina for thethose with Rubbermaid, Inc. and the Clorox
shutdown of refinery operations and then on theCompany. That then translates into myriad
lack of refineries in order process the imported oilproducts consumed by the average American on
the U.S. was receiving from Europe, as a result ofa daily basis in which plastic is either a component
the shutdowns from Hurricanes Katrina and Rita.of its manufacture or plastic containers or
The U.S. Congress is still in the initial stages ofwrappings which contain another product such as
investigating how much of that is palpable.Butfood items or dry goods. For instance, the price
following the disaster in the Gulf of Mexico, U.S.of a gallon of milk has risen approximately 15
consumers will also experience sticker shockcents since Hurricane Katrina because of the
beyond the pumps and their monthly heating bills.plastic bottles in which it is distributed.
Unbeknownst to the average consumer is that