Oil Exporter Price Gouging

A $3 box of cornflakes contains 15 ounces of corn that cost 8 cents when bought from the farmer.

Why do we blame increases in the cost of corn, wheat or rice on rapidly rising food prices? Production, transport, wages and packaging are the main costs of retail food where the effect of oil price increases can be huge.

Which brings us to the real culprit: the Organization of the Petroleum Exporting Countries.

This year, with OPEC-rigged oil prices exceeding $100 a barrel, the U.S. will pay $800 billion for its oil supply, and the world as a whole will pay $3.2 trillion.

These figures are both up a factor of 10 from what they were in 1999 and represent a huge regressive tax on the world economy…

Chicago Tribune: Food vs. fuel a global myth