Turn on the television and watch out for the news. Majority of the headlines right now are focused on the growing issue of oil and the effects of high gas prices. Almost every week a new development is reported in most cable news network and the forecast are usually grim.

News stories may vary, some of the news suggests that new round of oil price increases will happen in the next week, an oil producing country is set to intensify production and another threatens to cut supply.

All these news though they may vary a little have long lasting effect on the oil market. And that is by making the oil prices shoot up to record levels.

What comes in next once the prices of petrol shoots up, and what are the effects of high gas prices?

One effect that will happen sooner or later will be movement of food prices. Food prices will surely shoot up in no time since the food industry and agricultural businesses heavily rely on oil for many purposes.

Oil is used to transport the food supplies and of course oil is used to power most agricultural equipments like tractors.

It’s like the house of cards that go crumbling down once a card is flicked. Next in line will be transportation costs and fares will shoot up.

And perhaps one of the greatest effects of high gas prices is the folding down of most companies. It happens and news stories show that job cuts are happening all around us.