Gas Prices Reverberate Through Economy

(CBS)  The Connie's pizza chain moves millions of pies a year across Chicago. And pizza usually moves faster in a slowing economy, CBS News correspondent Anthony Mason reports.

But co-owner Mark Stolfe says his profits are being eaten up by the cost of food and gas.

"Cheese is up. Flour is up. Gas is up," Stolfe said. "And those are the three biggest things in the cost of pizza delivered to your door."

With crude hitting another all-time high Wednesday, gas is now averaging $3.17 a gallon -- 69 cents higher than a year ago.

"Demand is outstripping supply, which causes prices to go up," President Bush said.

Mr. Bush has urged OPEC to up production. But OPEC won't pump more oil.

"If the prices are high," OPEC's president said Wednesday, "They are not due to a lack of crude. They are due to what's happening in the U.S."

In the U.S., the dollar is taking a nosedive. It hit an all-time low against the Euro Wednesday.

And because oil is traded in dollars, it's getting cheaper for overseas buyers to fill up.

"I think if the dollar keeps falling, I think oil becomes much more attractive to certain types of investors. And I think it will keep upward pressure on oil," oil trader Ray Carbone said.

It's not good news for you - or Mark Stolfe, who's watched the monthly gas bill for 25 pizza delivery trucks jump from $9,000 to $12,000.

"I don't see food prices coming down. I don't see gas prices coming down," Stolfe said. "So my biggest fear is what am I going to do next year?"

This pizza man worries whether his business can keep delivering profits with an economy running out of gas.

[sjc_1]

It will most certainly be over $1 trillion with interest just for Iraq. When you consider Afghanistan and all the wounded and weapons and continued presence in the region, it is staggering. The upshot from all this is that it did not have to happen. It was the twisted ego of one maniac that caused all of this.

[sjc_1]

The slide in the dollar is a big part of this. The war in Iraq has cost well over $500 billion and climbing. Most of that was borrowed and will have to be paid back with interest. It is no wonder that it is taking its toll. The latest figures on the total cost of the Iraq invasion will be over $3 trillion, when all the wounded veterans are cared for the rest of their lives.

[relee42]

The main reason that the price of oil is so high is the sagging strength of the dollar against most major currencies. Thank you Republican hawks. Stop spending money on this war like a drunken sailor, wars are inflationary.

[100mpg]

About a year ago I converted my car into a Plug-in Hybrid that gets over 100mpg. I have used the savings from not buying gas on local restaurants and shops, helping my local economy. I use Clean Domestic Wind Energy to offset the amount of Dirty Foreign Oil I need. Plug-in cars won%u2019t work for everyone, but they will work for most. If everyone who could would switch to plug-in cars, demand for oil would go down and truckers would not have to pay so much. Plug-in cars a good for our national security, our environment, our economy, and our wallets. When you only put in 15 gallons of gas to drive 1500 miles a month, a dollar extra per gallon is not that bad. The problem happens when everyone else in not trying to do everything they can to save gas and our food prices go up.

[trillion1]

I can''t think of any product that cuts across more levels of our economy than gas. With the oil companies making tens of billions in PROFITS each quarter it is hard to believe anyone would try to defend them. What I don''t find hard to believe is that congress does nothing. This goverment is bought and paid for by big business. They stopped representing the American worker years ago. And your kidding yourself if you think things will improve in the next election. Incumbents will be reelected and who ever sits in the WH got there with big business money.

[ndg1979]

Unfortuantely, the cost of gasoline does not need to be this high. It is strictly corporate greed by the oil companies trying to rake in every penny they can before their bubble bursts. The White House was trying to figure out how to pay for the upcoming tax rebate (hope you enjoy your muffler America), and all they had to do was have the amount divided up between the oil companies who could have paid for it without blinking an eye. I am sure you all saw Exxon/Mobil''s profits - big oil could afford to give some of it back - BUT THANKS TO BUSH TAX CUTS FOR BUDDIES IN BIG OIL, this is what you are stuck with.

Since McCain has no chance of winning this election, especially after G.W.''s supportive handshake, I hope the dems get the go-nads necessary to change this sad state of affairs we are in and restore American dignity throughout the world.

You heard OPEC, they have the oil, it isn''t supply & demand, it is the U.S. dollar and corporate profits.

[tryhonesty]

I also remember the past energy crisis years ago and the gas companies storing extra gas from their 18 wheel tankers dumping and storing fuel in abandoned/closed gas stations (in Southern California). I remember speaking with these oil company "Truckers", and the truckers were complaining that they were running out of storage for all of the fuel they were hiding while the price of fuel kept rising...The two "oil men in the White House" now... reminds me of the same ol''games...RepubliCONS/neoCONS then and now.

[wogerwabbit]

During the first gas crisis years ago when the lines were blocks long getting to the pump, my dad was an air traffic controller in New York. I remember him telling me about pilots ranting and raving that you could walk to Europe on all the oil tankers waiting offshore for the prices to rise. This is the force were dealing with... greed beyond comprehension, life be damned. I think they''re called neocons.

[olebd]

Could this be a ploy by big oil? To get us used to $4 gas so that when it dips to $3 we are grateful and stop complaining while big oil rakes in the profit.

[hsinco-2009]

Remeber the good ole days of complaining about $2.00/gal gas?

Thanks Bu$h/ McCain!