Estimated Price Increases Due to Higher Costs of Petroleum and Other Imports, as Calculated from a 38-Sector 1968 Input-Output Model. Quarterly Economic Commentary, March 1974

Abstract

In December 1973 the Arab Oil States declared their intention to raise the posted price of crude oil to over 350 per cent of its pre-October price. Assuming that operating costs, company profits, freight and insurance are unlikely to remain at their original levels per barrel, the average rise in the c.i.f. price which importing countries will now have to pay for crude petroleum is of the order of 200 per cent. Otir model is intended to estimate and analyse the effects of such a pnce rise on the prices of other goods in Ireland, and the overall effect on the cost of living and other categories of final demand. The framework is the 1968 input-output table with certain key sectors broken dowri in finer detail