Oil is a very significant commodity and its price affects much of the economy. The most obvious is transport costs i.e. the price of petrol and diesel. Deliveries of raw materials to factories, distribution of finished goods from manufacturer to warehouse/retailers, then deliveries to customers. The oil price also affects energy costs e.g. heat, light and machine power.
The price is going upwards, partly to do with unrest in North Africa. There are now many articles in the media highlighting the effect, from small businesses struggling to cope @£1.47/litre of diesel in the Highlands to major holiday companies (e.g. Thomas Cook) adding fuel supplements (i.e. putting the holiday price up).
Higher distribution and energy costs will be reflected in higher prices for food and other products. For an example click here.
The UK and Scottish governments are being asked to intervene. Read relevant newspaper articles or watch TV reports to familiarise yourself with the debate/effects.
