Fuel Surcharge P & O

[d9704011]

30 minutes ago, wowzz said:

I don't think you realise how much a litre ( note the spelling) of petrol costs in the UK! 

Yes, excuse the spelling error.  We're currently paying about 1.14 GBP/l here.  I was under the impression Britboys was ready to shell out £154.9/l, which I consider a bit too much.

 

Shouldn't you be in bed by now?

[2BACRUISER]

1.54 litre is cheap it was 1.89 litre at our local texaco yesterday 😤 ships run on crude diesel so hope they buy cheaper lol 

[tring]

5 hours ago, d9704011 said:

Yes, excuse the spelling error.  We're currently paying about 1.14 GBP/l here.  I was under the impression Britboys was ready to shell out £154.9/l, which I consider a bit too much.

 

Shouldn't you be in bed by now?

 

The price petrol price has a very large element of tax here and has always been a whole lot more expensive than in North America.

[kalos]

2 hours ago, 2BACRUISER said:

1.54 litre is cheap it was 1.89 litre at our local texaco yesterday 😤 ships run on crude diesel so hope they buy cheaper lol 

Talking to a guy who works at the port told me ..

The Iona runs on liquified natural gas (LNG) but Southampton does not have any storage for

replenishing the ship , so they have a LNG tanker bring it over the North sea for that purpose.

In todays way of the world, I would say sooner the better they build their own LNG storage . 

[Snow Hill]

39 minutes ago, tring said:

 

The price petrol price has a very large element of tax here and has always been a whole lot more expensive than in North America.

Tax is 54% of the cost of a litre of petrol

 

 

Edited March 12, 2022 by Snow Hill

[davecttr]

15 minutes ago, kalos said:

Talking to a guy who works at the port told me ..

The Iona runs on liquified natural gas (LNG) but Southampton does not have any storage for

replenishing the ship , so they have a LNG tanker bring it over the North sea for that purpose.

In todays way of the world, I would say sooner the better they build their own LNG storage . 

They could install pre pay meters at every cabin door, swipe your card and put £20 into the slot or the door won't open. That should help with the gas bill - only joking

[Britboys]

8 hours ago, bbtablet said:

Might I suggest this is Fake News?!

 

8 hours ago, d9704011 said:

I sort of figured it wasn't the 10p/l price increase but the somewhat lofty price of a liter of gas.

I would never post fake news but really wish this was. Petrol/gasoline in the UK has always been much higher priced than in North America and higher than Europe generally. This is partly because it is heavily taxed. Prices have risen rapidly recently, exacerbated by the Invasion and war in Ukraine.

The AVERAGE price per litre is now over GBP 1.60....

On top of that, our domestic fuel (gas/electricity) is more than doubling...

Edited March 12, 2022 by Britboys

[terrierjohn]

2 hours ago, kalos said:

Talking to a guy who works at the port told me ..

The Iona runs on liquified natural gas (LNG) but Southampton does not have any storage for

replenishing the ship , so they have a LNG tanker bring it over the North sea for that purpose.

In todays way of the world, I would say sooner the better they build their own LNG storage . 

I dont believe the port has oil storage tanks either, they always refuel from a bunkering barge which is moored alongside. So I assume the vessel holding the LNG could just as easily have been loaded from any UK based bulk LNG facility.

. 

[kalos]

17 minutes ago, terrierjohn said:

I dont believe the port has oil storage tanks either, they always refuel from a bunkering barge which is moored alongside. So I assume the vessel holding the LNG could just as easily have been loaded from any UK based bulk LNG facility.

. 

Must be down to cost then, even the bunkering barges are at stops such as Rotterdam.

Maybe to avoid UK taxes . I suppose P&O have their reasons in their methods .

[zap99]

9 hours ago, d9704011 said:

Yes, excuse the spelling error.  We're currently paying about 1.14 GBP/l here.  I was under the impression Britboys was ready to shell out £154.9/l, which I consider a bit too much.

 

Shouldn't you be in bed by now?

I get it. Should be 154.9 pence not £154.9. I got it first, do I win a prize.🤣

[zap99]

3 hours ago, kalos said:

Talking to a guy who works at the port told me ..

The Iona runs on liquified natural gas (LNG) but Southampton does not have any storage for

replenishing the ship , so they have a LNG tanker bring it over the North sea for that purpose.

In todays way of the world, I would say sooner the better they build their own LNG storage . 

We often fill up at Morrisons, just outside Southampton. Perhaps they could ..............perhaps not.🤔

[newbie cruissy]

Tax on 100l of fuel at £1.30 per litre is £72.80

 

Tax on 100l at £1.97/l is £110.32

 

For govt to maintain its normal tax revenue it could reduce by 37.5p/litre 

 

Just an idea.... 

[zap99]

2 minutes ago, newbie cruissy said:

Tax on 100l of fuel at £1.30 per litre is £72.80

 

Tax on 100l at £1.97/l is £110.32

 

For govt to maintain its normal tax revenue it could reduce by 37.5p/litre 

 

Just an idea.... 

And what a jolly good idea. That may happen.......it could.. couldn't it.?🤔

[Britboys]

34 minutes ago, zap99 said:

I get it. Should be 154.9 pence not £154.9. I got it first, do I win a prize.🤣

Thanks - the (154?) penny has dropped now. Apologies for the typo....

[yorkshirephil]

24 minutes ago, newbie cruissy said:

Tax on 100l of fuel at £1.30 per litre is £72.80

 

Tax on 100l at £1.97/l is £110.32

 

For govt to maintain its normal tax revenue it could reduce by 37.5p/litre 

 

Just an idea.... 

Albeit I agree with your sentiment, your calculations are wrong. Fuel duty is fixed at 57.95 p/L regardless of the overall cost so the only difference between your examples is the vat aspect which equates to 16.7% of the final price.

[bbtablet]

11 hours ago, bbtablet said:

Might I suggest this is Fake News?!

Re my post above - isn't it amazing how we only see what we expect to see?! The number of subsequent posters who just didn't see the £154.9 slip even after it was pointed up is an interesting example.

[crompton21]

Back to the hedging question, in the words of the president and CEO (earnings call transcript 20/12/21)

 

Carnival Corporation (CCL) Q4 2021 Earnings Call Transcript | Nasdaq

 

Paul Golding -- Macquarie Capital (USA), Inc. -- Analyst

Great. And then on the cost side, as we think about your commentary on inflation, your thoughts on 2022, fuel cost. Should we start thinking more about weather hedging is going to play a role here again for for your team versus what was previously not a robust hedging program on your side in the fuel space?

Arnold W. Donald -- President and Chief Executive Officer

We historically haven't hedged. And at this point in time if that changes, we'll let you know. But it should -- historically we haven't hedged. We have felt that over time that all takes care of itself and we have some natural hedges with the portfolio we have and revenues and costs and different currencies around the world. I know you're talking about fuel price hedging. But I'm just saying, other than that we really typically don't hedge.

[terrierjohn]

2 hours ago, zap99 said:

And what a jolly good idea. That may happen.......it could.. couldn't it.?🤔

Rishi has got to do something like that, not only on petrol and diesel but also on domestic gas, electricity and heating oil. Otherwise many people will be struggling to survive with the inevitable increases in their living costs.

 

[terrierjohn]

1 hour ago, bbtablet said:

Re my post above - isn't it amazing how we only see what we expect to see?! The number of subsequent posters who just didn't see the £154.9 slip even after it was pointed up is an interesting example.

Some of us noticed it,  but realised it was a simple mistake, so chose to ignore it.

[tring]

21 minutes ago, crompton21 said:

Back to the hedging question, in the words of the president and CEO (earnings call transcript 20/12/21)

 

Carnival Corporation (CCL) Q4 2021 Earnings Call Transcript | Nasdaq

 

Paul Golding -- Macquarie Capital (USA), Inc. -- Analyst

Great. And then on the cost side, as we think about your commentary on inflation, your thoughts on 2022, fuel cost. Should we start thinking more about weather hedging is going to play a role here again for for your team versus what was previously not a robust hedging program on your side in the fuel space?

Arnold W. Donald -- President and Chief Executive Officer

We historically haven't hedged. And at this point in time if that changes, we'll let you know. But it should -- historically we haven't hedged. We have felt that over time that all takes care of itself and we have some natural hedges with the portfolio we have and revenues and costs and different currencies around the world. I know you're talking about fuel price hedging. But I'm just saying, other than that we really typically don't hedge.

 

Reading that, we are both confused as it seems to contradict, maybe what was said before that would make it a bit clearer. 

 

[crompton21]

1 minute ago, tring said:

 

Reading that, we are both confused as it seems to contradict, maybe what was said before that would make it a bit clearer. 

 

 

The underlined bit is a link, but what comes before it doesn't really help.  The transcript is as the words were spoken which I agree are confusing.  Can't help but feel that it does infer they are not currently hedged (as does my reading of the accounts).  

 

Also says that they plan to use 2.9 million tonnes of fuel in 2022.  Cost was $563 per tonne in December, now about $950.  Multiply those two and gulp.

[molecrochip]

3 hours ago, crompton21 said:

Back to the hedging question, in the words of the president and CEO (earnings call transcript 20/12/21)

 

Carnival Corporation (CCL) Q4 2021 Earnings Call Transcript | Nasdaq

 

Paul Golding -- Macquarie Capital (USA), Inc. -- Analyst

Great. And then on the cost side, as we think about your commentary on inflation, your thoughts on 2022, fuel cost. Should we start thinking more about weather hedging is going to play a role here again for for your team versus what was previously not a robust hedging program on your side in the fuel space?

Arnold W. Donald -- President and Chief Executive Officer

We historically haven't hedged. And at this point in time if that changes, we'll let you know. But it should -- historically we haven't hedged. We have felt that over time that all takes care of itself and we have some natural hedges with the portfolio we have and revenues and costs and different currencies around the world. I know you're talking about fuel price hedging. But I'm just saying, other than that we really typically don't hedge.

I translated this as:

Historically we have not hedged costs. It all sorts itself out.

You're talking about fuel price. Other than fuel price hedging, we don't hedge.

 

The implication being that fuel price hedging does take place but not for anything else.

[molecrochip]

18 hours ago, tring said:

Can I please mention another point which Is affecting us at present.  We are booked on the 24th May Baltic cruise, and are still awaiting a revised itinerary, yet passengers on the two cruises going out earlier in May, (one only nine days earlier), had their new itineraries notified to them last Friday.  Also the other Carnival lines appear to have rescheduled most, if not all, of their cruises and It was noticed on Wednesday morning that our ship was booked into what appears to be replacement ports, yet still no notification.  So can I ask if you know why the itineraries are taking so long and if you think P&O may decide to pull our cruise out of the Baltic entirely, given how things are developing.  We will be away for almost two weeks from Sunday, and will not have internet access for most, possibly all, of that time, which is why I am asking here on a personal basis.

 

Often one change of port requires some manipulation of existing calls to make the whole itinerary work. It may be that replacement ports are sorted but timings etc for other ports are still in flux.

 

Do I think P&O will pull out of the Baltic. Not at present, but I don't it won't take much to make the region too risky.

[terrierjohn]

2 hours ago, molecrochip said:

Often one change of port requires some manipulation of existing calls to make the whole itinerary work. It may be that replacement ports are sorted but timings etc for other ports are still in flux.

 

Do I think P&O will pull out of the Baltic. Not at present, but I don't it won't take much to make the region too risky.

Does Russia have much of a naval presence in the Baltic? 

Despite the rhetoric coming out of the Kremlin I don't think they will attack any of the 3 ex USSR Baltic states, they know that will lead to a military conflict with NATO.

[twotravellersLondon]

10 minutes ago, terrierjohn said:

Does Russia have much of a naval presence in the Baltic? 

Despite the rhetoric coming out of the Kremlin I don't think they will attack any of the 3 ex USSR Baltic states, they know that will lead to a military conflict with NATO.

 

There does seem to be an increased Russian Military presence in the Baltic. The Russians have a naval base in Kaliningrad, a Russian enclave wedged between Poland and Lithuania. Kaliningrad has recently been reinforced by adding more firepower to bolster both its defensive and offensive potential.

 

Kaliningrad's EEZ extends half the way to Sweden. The Russian Navy has been practicing naval and air war-games the Baltic Sea. Six Russian Amphibious Warfare ships left the naval base in Kaliningrad, and entered the Baltic Sea in mid-January... Sweden had no option except to send trips to potentially  "defend" the island of Gotland.

 

But... I'm in the same mind as you at the moment... threat and rhetoric rather than military conflict.