Wednesday, October 22, 2014

Fuel price strike

There is still milk on the shelves of my supermarket, but for how much longer? Spanish lorry drivers have decided to strike, in protest against higher fuel prices. Apparently, transport fees are renegotiated only intermittently (taxi drivers are out of luck completely), and oil at $135 is not making them happy. Apart from the spectacle of cars lining up for fuel (like during the oil crises of the 1970s), it's an interesting exercise in how rigid some prices apparently are - without rigidities in setting prices for truck transport, presumably truckers would care but little (unless demand for their services collapses if they introduce a fuel surcharge). I assume the whole thing will be resolved with a few symbolic compromises, but it could be quite nasty if the strike lasts for more than a week or so. Now, if only I didn't have to worry about getting to a weekend wedding...

No comments:

Post a Comment