As a frosty winter sets in
Henry Munangatire
Issue date: 12/14/05 Section: News
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As the drafty wind chill sets in this winter, so will the bitterness of the projected jagged increase in natural gas prices begin to rock the wallets and coiffeurs of many families and businesses. Energy analysts and economists including the energy information agency amongst others have estimated that homes that use natural gas for heating can expect to pay up to 45% more this winter. Moreover, the Southern California Gas Company, one of the nation's leading suppliers of natural gas, states that the residential monthly bill for an average single family would be around $115 to $122 as opposed to $79 of last winter. The average apartment bill could be around $50 compared to $33 last winter.
These figures are without a doubt very alarming and are an instant cause for major concern bearing in mind the recent increase in gasoline prices this fall, which have recently started to recede. Apart from the direct impact the price of these commodities have on the public as they are used and consumed daily, it is important to note that these are resources used in every sector of our economy for the production and manufacturing of other goods. Therefore, when they increase, they pull with them the prices of further goods and services too.
By virtue, all industry in America is dependent on the supply of energy be it heat or fuel. The overall result of the increase in the price of natural gas would then be consumers paying more for almost all other basic commodities, whose production is dependent upon these vital sources of energy. As the price hike breaks through all sectors of the economy, it leaves no stone unturned, escalating manufacturing and agricultural production overhead expenses, which must be kept low in order to sustain profits. This means that for companies to maintain their level of profit, they would have to cut costs. In instances similar to this, the most frequently cut costs are labor costs, the result being hundreds if not thousands of civilians getting laid off.