MARIA: WELCOME BACK.
WELL, A BARBECUE WALLET-BUSTER.
AS YOU NO DOUBT HAVE NOTICED, IT
IS COSTING MORE FOR YOUR
MEMORIAL DAY FOOD IN THE YEAR.
KEY ITEMS LIKE RIBS, GROUND
BEEF, CHICKEN ALL UP DOUBLE DING
THE JILTSES FROM LAST YEAR.
JOINING ME NOW TO TALK ABOUT
THAT IS UNITED REFINING COMPANY
CHAIRMAN AND CEO JOHN KATZ MA
TEE D.C.
JOHN, HAPPY MEMORIAL DAY TO YOU.
IT’S NOT SO HAPPY FOR THOSE OF
US WHO ARE GETTING OUR WALLETS
BUSTED BECAUSE SO MUCH IS
COSTING US SO MUCH MORE.
HOW WOULD YOU ASSESS INFLATION
AT GROCERY STORE TODAY?
>> IT’S HIGH AND IT’S GOING TO
GO HIGHER, MARIA WITH.
IT’S -- MARIA.
IT’S BECAUSE OF THE COST OF
DOING BUSINESS IN THE STORES,
LABOR COSTS ARE UP, CONTINUE TO
RISE.
LABOR SHORTAGES ARE -- WE’RE
SHORT BEING ABLE TO HIRE PEOPLE.
THE MANUFACTURERS THAT DELIVER
TO OUR STORY STORE -- STORES AND
TO ALL STORES, THEY ARE
INCREASING COSTS.
AND MOSTLY A LOT OF IT, 70% OF
THE TRANSPORTATION THAT IS DONE
FOR PRODUCT IN ALL STORES IN THE
UNITED STATES IS DONE BY DIESEL
FUEL.
AND THE FACTORIES ARE RUN BY
DIESEL FUEL.
SO AS THE PRICE INCREASES AND
THE TALK ABOUT SHORTAGES IN
DIESEL FUEL ARE HAPPENING, ARE
HAPPENING IF DEPENDING ON THE
AREA, THAT IS SHOWING A
SIGNIFICANT COST TO THE
CONSUMER.
WHEN BRITAIN SAYS THEY’RE GOING
TO THIS MORNING OR THE OTHER DAY
THAT THEY’RE GOING TO INCREASE
TAXES ON THE OIL COMPANIES,
THAT’S JUST FUELING THE POOR AND
MIDDLE CLASS SAYING, WHY AREN’T
WE DOING SOMETHING ABOUT IT?
BUT IT’S ALL -- IT’S THE DUMB
CAN, BECAUSE ALL THESE COMPANIES
ARE GOING TO DO IS PASS IT ON TO
THE CONSUMER.
SO ALL IT IS --
MARIA: RIGHT.
>> -- AN ADDITIONAL COST TO
CONSUMER.
MARTHA: --
MARIA: ALL OF THE THINGS WE BUY
ARE UP, EGGS UP 18%, MEAT UP
17%, THE PRICE OF AN AIRLINE
TICKET UP 3 3%.
SO YOU SAY IT’S ABOUT OIL AND
DIESEL AT THE END OF THE DAY.
WHAT IS IT GOING TO TAKE TO GET
OIL AND DIESEL PRICES DOWN?
>> WELL, LET’S OPEN UP NORTH
AMERICA LIKE WE’VE ALWAYS SAID?
THE BRITISH, SOME OF THE
COMPANIES IN EUROPE SAID TO
GREAT BRITAIN, CAN WE DRILL IN
THE ARCTIC OCEAN?
THEY SAID, ABSOLUTELY NOT.
MEANWHILE, CHINA, RUSSIA,
THEY’RE DOING WHATEVER THEY
WANT.
WE ARE BEING FORCED NOT TO BE TO
COMPETITIVE IN THE WORLD.
HOW DO YOU SAY THAT IN ENGLISH?
I MEAN, IT’S PLAIN ENGLISH.
MARIA: YEAH.
>> WE ARE BEING MADE TO BE
NONCOMPETITIVE.
EVERYTHING THAT THE WASHINGTON
HAS BEEN DOING FOR THE LAST 12,
14 MONTHS IS MAKING THE AMERICAN
CONSUMER POORER, THE AMERICAN
POOR POORER, THE AMERICAN MIDDLE
CLASS POORER.
AND GUESS WHAT?
WE’RE MAKING THE REST OF THE
WORLD RICHER.
MARIA: YEAH.
I KNOW THAT IT’S COSTING US ALL
MUCH MORE THIS MEMORIAL DAY, BUT
YOU JUST SAID IT’S GOING TO GET
WORSE AND THAT’S BECAUSE WE
HAVEN’T ENTERED THE PEAK DRIVING
SEASON, RIGHT?
IS THAT THE REASON?
OIL PRICES GET HIGHER AND THEN
INFLATION FOLLOWS.
>> THERE’S THE ABOUT A 30-DAY
LAG SOMETIMES BETWEEN PRICES --
MARIA: I SEE.
>> -- AND THE STORE THES OR --
STORES OR PRICES AS THE GOT
TANK.
IF YOU LOOK AT YOUR SCREEN,
CRUDE OIL IS UP TO, LIKE, 115,
116.
30 DAYS AGO IT WAS ONLY 100,
105.
MARIA: YEAH.
I SEE.
>> SO WHAT DOES THAT MEAN?
THAT MEANS YOU’RE GOING TO SEE
HIGHER PRICES 30-60 DAYS FROM
NOW.
MARIA: GOT IT.