Why Are Grocery Prices Getting So Expensive (It's Not What You Think)

Added: 2026-05-30

[00:00:03]You must have realized that prices have been rising. Not like kind of way, but more of a what the kind of way. And this price hike is affecting everything from the food we eat to the essentials we use to every little thing that we do in our daily life. This price hike has affected it all and it all comes down to one thing.

[00:00:33]Crude oil. So I want you to guessel.

[00:00:43]Okay. So now I want you to comment down what did you guess.

[00:00:56]So today we are going to look at this US Iran war which is not only increasing your fuel prices but how this war is disrupting the very foundation of modern manufacturing economy.

[00:01:17]attacking demand and as per the basic law of economics the prices of crude oil have started skyrocketing okay we are looking at something much deeper.

[00:01:48]Remember toothpaste oil.

[00:02:17]crude oil crude oil diesel bike.

[00:02:31]Let's take one barrel of crude oil that's around 159 L. And when that black crude oil is refined to what a 74 L petrol bun 35 L diesel ponderosine that's around 124 L of very common fuels we use in our daily life which are mostly used in refineries itself that is around 14 L of cooking fuel heavy fuel. fuel which is used to power big big machines in big big factories.

[00:03:10]Yes.

[00:03:16]Not the coke we drink but the coke that is burnt in big factories, steels, aluminium, iron lubricant which is used in grease mobile.

[00:03:36]It is actually used to make plastic, rubbers, lipstick, medicines and what not. Now if we add up everything we have around 164 L of product coming from 159 L of crude oil. And before you comment math this happens because unrefined crude oil is very very dense but as heavy dense crude oil refined this molecules break down therefore making its volume bigger density lower and mass remains constant. as we studied in class 8. So again getting back to the start of the video which comes from that 4 L of refined product of crude oil. So crude oil to 15% and that packaging is mostly plastic. So even if shampoo toothpaste toothbrush 7.7% increase because there is lack of plastic for packaging and the things like sanitary pad, tampons and diapers have also seen two to 6% rise. But that is not only because of packaging of course but the product itself also needs crude oil to be manufactured and other things like they all need prochemicals. And so the most common ingredient of almost every item we use in one way or another is crude oil. But amongst all the substances, the most important thing is plastic. And that plastic is at the core of this immense price hike that we are facing right now. For example products of crude oil and all the plastic that we are surrounded by the biggest manufacturer is China. The biggest exporter is China and China's biggest importer is United States of America and that plastic is getting expensive for United States of America because United States of America wanted to give some freedom to Iran Mars 50 to 60% price which completely wiped out their profits. But eventually they will increase price and to account for the losses that are happening right now that price hike is going to be either massive or it is going to stay for long term and as we know for example PNG group to account for losses that happened during but loss recover They never decrease the price because we got used to the inflated prices and this crisis will increase price even more. So even if magically besties of UAE because they are going to account for losses that has happened during this time and once price increases it is not going to decrease until that time let's drink Coke and I hope it's not made from crude oil.

[00:08:08]There is something really important I need to tell you before you close this video. you know YouTube.

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