Fuel surcharge and Duty

bachelibelly


Joined: 04/09/2008
Posts: 275

Message Posted:
27/12/2008 19:43

Perhaps someone in the industry may be able to help with this one .Given that crude has spiralled downwards in price from its high last Summer why has the the Fuel surcharge on flights not started to follow suit.Is it the Gas and Electric company rip off procedure of always having no stocks of the cheapo oil when it goes up in price but strangely enough when it goes down they have bought in advance and have shit loads of the dear stuff left,thus ruling out a price reduction till 2018 !!!!!

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
27/12/2008 19:56

Certain Airlines have begun to rduce their fuel surcharges already. There is the exchange rate factor to be taken into account as sterling has depreciated some 25% against the dollar, the currency all fuels are priced in during the period of falling oil prices.



I suspect more could still be done though.



Paul

allycatthree


Joined: 22/04/2008
Posts: 86

Message Posted:
28/12/2008 01:25

I have a cruise booked and payed for next april and the fuel surcharge has been refunded. No sign of the the airline refunding or reducing its surcharges!!

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
28/12/2008 14:01

alleycat three..Ships use fuel oil,aircraft use avtur,two entirely different typesof fuel.Akin to deisel and unleaded fuel. We are still paying over the odds for car fuels here inUK compared to other countries.Until the Utility companies (gas/electric) drop there prices we will continue to pay overthe odds for our fuel.After all the oil refineries require both to operate and they are not going to operate at a loss are they.I do think though that they can reduce it somewhat because the surcharge went when it ws around 80$ a barrel.there was something on the news the other day about the Utility companies reducing ther charges by 10%in the new year,might see some canges there but not hopeful...

allycatthree


Joined: 22/04/2008
Posts: 86

Message Posted:
28/12/2008 15:47

Couchie, of course u r right however both types of travel put surcharges on as a result of world wide crude price increases. I do agree with u about the utilities and all other charges in the uk.

teatime


Joined: 20/10/2008
Posts: 852

Message Posted:
28/12/2008 18:48

Coachie

"there was something on the news the other day about the Utility companies reducing ther charges by 10%in the new year,might see some canges there but not hopeful..."

Yes but when in the New Year? Probably when the warmer weather comes in and we are not using so much. fast enough to put prices up though, aren't they!!!!

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
29/12/2008 21:51

teatime ..certainly are,30% last time if my memory serves me.They are still in pocket with a 10% reduction.Big hearted of them isnt it,but dont forget they still have to pay these mega salaries to there CEO and his cronies so they cant bring it down to much can they..

Turbo


Joined: 24/12/2006
Posts: 833

Message Posted:
29/12/2008 22:12

Coachie,

If price per barrel goes up or down , the production cost should not be affected.



If the US can make huge drops why cant everyone else.



Petrol 6-12 months ago was $4.50 a gal.

2-3 months ago, dropping still , now its an unbelieveble $1.62 a gal.



I cost me $48 $ to fill up my car in March , yesterday it was $17.50 big drop.



Pure Greed .

Coachie



Joined: 29/07/2008
Posts: 2135

Message Posted:
29/12/2008 22:26

Turbo.. Itotally agree with you.These aresome the answers been given by the refining companies.like you we were paying£1.40p a litre when oil was $140 bbl.Today it is $38 a barrel so we shoul be paying no more than £0.40p alitre.but we are paying £0.85p alitre.Rip off britain again.The Government does not help the situation either by the high fuel tax they impose,but in the end its as you say "sheer greed" and that applies not only to the fuel prices but the whole damned mess we are in now...