What gives? I'd think that with more engines being imported the price would go down or at least stay constant.
The Cost to deliver rises with fuel prices, but then it will cancel itself out.
The Cost to deliver will be to high, then the products can stay and rot in the shipping containers they arrive in cos the trucks won't be able to afford the fuel to pick up and deliver, or we won't see the Value in the product if delivery outstrips production costs !
That's one scenario.
2nd scenario, greed
3rd scenario, demand and supply, but goes back to the manufactures speculation to out-bid the crude oil price, so they can keep making products @ cheap labour, BUT only to find their products will be undeliverable abroad cos they made it too costly for the truck operators to buy the over priced fuel, so they stuck with thier product. So it's back to scenario 1.
Basicaly, a "seizure"....
For example, if I was Manufacturer Ajax in the North Pole, and I needed fuel at all costs to keep my ice cube factory working, and you are Manufacturer Bjax in the South Pole making ice cubes to, we would compete at getting our supply of oil by paying more.
So if I win the bid and the price of crude is what it is, I get to make the ice cubes.
But, because everyone else in the Equator region of the world pay the same price as I did for fuel, and it's so high that it forces the truck operators to reconsider weather it is now feasable to operate a delivery truck, then my Ajax ice cube factory is stuck with the melting ice cubes !
Bjax will sit it out, wait till the price is cheaper in oil, but by then Cjax makes a move and out bids again..., and on it goes till the cows come home.