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quote:Originally posted by Frosty 4:Today oil surpassed the $70/barrel mark. I think this was the level once reached where the fuel surcharge is put into place. I know that cab fares here in the Chicago area have that rule.Anyone confirm?Frosty 4
Some cruise lines had set $65.00/barrel as the benchmark for adding surcharges, but most lines have also recently stated that, due to the state of the economy, they are not doing so. (For the time being!)
Rich
The major cruise lines wisely locked in fuel contracts when oil prices had dropped and should be able to hedge market spikes. The last round of fuel surcharges occurred when oil was high at the same time cruise lines were renewing fuel supply contracts and they got stuck with a fixed high price (subsequently passed onto the passengers).
Unfortunately the general consumer does not have this advantage and typically do not pay for fuel at the pump, but instead are purchasing fuel trading futures. Check the price at the pump in the morning on your way to work. Should anything cause the price of oil to rise on the market that day, it will be higher at the pump THAT evening. The reverse, however, does not seem to materialize. If oil plummets on the market, it takes weeks for a few cents to trickle down at the pump. Even though the fuel we buy was drilled, refined and shipped weeks prior, our purchase price is reflected more by market speculation of the moment.
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