fuel prices

[kathanderik]

Hi all,

 

Oil has really dropped from it's high- today it is just under 97 dollars a barrel. Do you think RCCL will decrease it's fuel supplement charge anytime soon?

[bionicman97]

Not to start a big gas complaining session, but i don't understand (excluding the recent hurricane) how oil is down 35% from high and gas was only down like 12.5% from high (again before the hurricane came through).

[bjlaac]

Its really sad but I doubt it. I just received an email from Crown and Anchor questioning the elimination of a port so RCI could save money they stated was needed because of rising fuel prices. Their response was that the fuel surcharge only covers a portion of the expense.

 

What gets me is oil is alost 50% lower now than in june when the last feul increase went into effect.Fuel is rapidly approaching the early spring prices and this constant fuel "excuse" to raise prices or save money is bordering on piracy.

 

Just my humble opinion

[golfer1966]

Not to start a big gas complaining session, but i don't understand (excluding the recent hurricane) how oil is down 35% from high and gas was only down like 12.5% from high (again before the hurricane came through).

 

 

Diesel is still high. I dont know who they buy their fuel from, but Im sure the big oil companies ( exon, shell, mobil...etc ) will keep the gas prices high, god forbid if the CEO doesnt get his 2.5 million dollar bonus this year.....sorry for venting. How about the weather we're having ....:rolleyes:

[shaggyofwv]

Hi all,

 

Oil has really dropped from it's high- today it is just under 97 dollars a barrel. Do you think RCCL will decrease it's fuel supplement charge anytime soon?

 

 

Until we can stop speculators from controlling the price of oil then we are going to have to deal with these wild fluctuations.

(and it doesn't help that we have a lot of oil that our congress won't allow us to bring to market)

The possible collapse of OPEC could be a positive, though. Saudi Arabia walked out of the latest OPEC meeting because the other OPEC members wanted to cut production (and did vote to cut), but Saudi Arabia has pledged that they will increase their production to ofset this cut from OPEC.

[Dive Master]

I seriously doubt that RCCL (or any of the major cruise lines) will reduce or eliminate the fuel surcharge anytime soon.They have found that people will pay it and are now used to the additional revenue it produces. I think the odds of seeing the fuel surcharge go away or about the same as:

 

1 Hell freezing over.

 

2 Pigs flying.

 

3 The Detroit Lions winning the Superbowl.

 

4 Al Sharpton being the next Grand Imperial Wizard of the Ku Kluckers.

 

Of course, it could happen but I would not bet my money on it.

[FitzLA]

Do a search on this topic please. There are many discussion on this. No, they will not decrease anytime soon. It may be lower, but considering it use to be $37 a barrel, it is still at record highs. It will have to go way down, and stay that way for a long time before they drop the charges. And RCI is not stupid. They know it will go back up again. It always does now. Wait until after the election and you will see. This question has been getting asked at least once a week lately.

[realtreebar]

Do a search on this topic please. There are many discussion on this. No, they will not decrease anytime soon. It may be lower, but considering it use to be $37 a barrel, it is still at record highs. It will have to go way down, and stay that way for a long time before they drop the charges. And RCI is not stupid. They know it will go back up again. It always does now. Wait until after the election and you will see. This question has been getting asked at least once a week lately.

 

SO!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[BobBeaSea]

Until we can stop speculators from controlling the price of oil then we are going to have to deal with these wild fluctuations.

(and it doesn't help that we have a lot of oil that our congress won't allow us to bring to market)

The possible collapse of OPEC could be a positive, though. Saudi Arabia walked out of the latest OPEC meeting because the other OPEC members wanted to cut production (and did vote to cut), but Saudi Arabia has pledged that they will increase their production to ofset this cut from OPEC.

 

Where did the info on Saudi Arabia's actions at the last OPEC meeting come from? This isn't my understanding at all.

[mpbmark]

This topic has been around for awhile now.

 

The last I heard, RCCL will cut out the fuel tax (my word, not theirs) when oil drops to $70 per bbl. Not likely to happen in my lifetime, but maybe yours.

 

The Saudis did not agree with the production cut, but I don't recall them stating they will up their own production to offset the decreased output from the other OPEC countries. They most likely will keep their output the same, which was still more than previously mandated by OPEC.

 

The Saudis do what they want, when they want and despite what OPEC wants. Those with the most toys, or oil, wins the game.

[FitzLA]

SO!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

So what? You have to explain yourself more than "so". I have no idea what you are trying to say.

[senrab]

I seriously doubt that RCCL (or any of the major cruise lines) will reduce or eliminate the fuel surcharge anytime soon.They have found that people will pay it and are now used to the additional revenue it produces. I think the odds of seeing the fuel surcharge go away or about the same as:

 

1 Hell freezing over.

 

2 Pigs flying.

 

3 The Detroit Lions winning the Superbowl.

 

4 Al Sharpton being the next Grand Imperial Wizard of the Ku Kluckers.

 

Of course, it could happen but I would not bet my money on it.

Also, my understanding is that because it is a "fee" as opposed to part of the "fare" (either way I have to pay it, so what difference does it make) then they dont have to pay comissions to the TAs who book it.

 

If they raised fares by $50 per week (or whatever the surcharge happens to be this week), then some of that would line the pockets of the travel agents. This way, RCCL (and other lines, too) get to keep 100%.

 

If I'm wrong, I welcome correction...

[FitzLA]

Also, my understanding is that because it is a "fee" as opposed to part of the "fare" (either way I have to pay it, so what difference does it make) then they dont have to pay comissions to the TAs who book it.

 

If they raised fares by $50 per week (or whatever the surcharge happens to be this week), then some of that would line the pockets of the travel agents. This way, RCCL (and other lines, too) get to keep 100%.

 

If I'm wrong, I welcome correction...

 

It's not like they are making a profit. Oil prices increased from $37 a brl to over $100 a brl before they added a fuel charge. This is just making up for the record oil prices. I doubt you will see their profits rise like you see the oil companies profits rising to all time highs.

[G'ma]

I think oil prices would have to fall and stabilize for several months before these annoying fuel surcharges are reduced or removed.

 

The oil market is just too volatile right now.

[cruiserbryce]

I still think mostly b/c the cost of oil is so unstable you will see the charges remain

[TEXASMUNK]

Golfer1966 has rolled out the mantra of the dreaded evil oil executives.

 

Fact: Exxon's net profit for the 2nd qtr of 08: $11 Billion dollars

Fact: US gov tax on Exxon for the 2nd qtr 08: $33 Billion dollars

 

Who is the fat cat?

 

Please do not buy into the political matra that U.S. is evil. U.S. Business is how we make our living, it is the blood of governemnt. This is not an EVIL country.

 

Yes, I own Exxon stock, yes it has taken a beating since oil was at $145 a barrel. But I am not sliding into a comfortable chair of using class envy to explain things.

 

Also, please do not forget, when oil was $145.....that is the futures price. we are seeing the impact at the pump from the oil prices of month's ago today, not the price of oil today.

[mpbmark]

While not necessarily disagreeing with what you state, two things trouble me.

 

First, Exxon still managed to make an $11 billion profit even after paying taxes of $33 billion. It seems to me an awful lot of money went through their coffers to produce those types of numbers.

 

Second, I do not believe in coincidences. I did note, however, in this morning’s paper, that the price of gasoline at the local pumps has increased $.05 cents to $.10 a gallon. If in fact this reflects the price of oil a month ago as you suggest, then why is the price of gasoline increasing instead of continuing to decrease for another 30 days before the full implications of hurricane Ike are felt?

 

I submit there may be a certain amount of profit taking or price gouging which may explain why people believe in the evils of business.

 

I am not interested in becoming engaged in a political discussion, but rather wish to put forth a couple of points.

[TEXASMUNK]

Nope, you are right, no politics.

 

The recent jump? Much of it has to do with 25% of the nation's refining capability is shut down. Not only the refineries, but also the pipelines that carry the fuels across the country.

 

No way did the gas in the ground suddenly become more valuable, but local stations jumped at the chance to gouge...some gouged ten cents, others jumped dollars!

 

Actually, oil companies net margins have been running at 7% for about the last ten years. That 7% puts them around 9th or 10th, by industry, for net profit margins. But, when you sell 1 billion barrels of oil at $50 a barrel then sell a billion barrels of oil at $100 but still have the same 7% margin, the nets double, making the oil company look greedy, despite their buy price having doubled as well.

 

 

See? A civil conversation, no politics! Just shake my head when so many people fall back on the latest TV political commerical or political commentator for their "facts."

[jaxon41]

It's not like they are making a profit. Oil prices increased from $37 a brl to over $100 a brl before they added a fuel charge. This is just making up for the record oil prices. I doubt you will see their profits rise like you see the oil companies profits rising to all time highs.

 

Oil, sweet crude, not the stuff ships use, was at $90 a barrel when the first surcharge was put on -- I am not sure what it was when they raised the surcharge 100%. At this point, they should reduce it back to $5 pp a day, imo. I doubt, however, that it will happen. At almost the exact time that the AG's opinion came down they raised port fees 70%, at least on my cruise -- and that has never been investigated.

[FitzLA]

Oil, sweet crude, not the stuff ships use, was at $90 a barrel when the first surcharge was put on -- I am not sure what it was when they raised the surcharge 100%. At this point, they should reduce it back to $5 pp a day, imo. I doubt, however, that it will happen. At almost the exact time that the AG's opinion came down they raised port fees 70%, at least on my cruise -- and that has never been investigated.

 

The only problem is that oil prices WILL go back up again, and then the cruise lines would just have to raise the fuel charges again. What I don't think anyone understands is that $90 barrel is still a record high, and they waited until late 2007 to institute a surcharge. Their big mistake was waiting so long. Now that we are back close to $90, everyone expects it to disappear. Not going to happen. Lets not forget that in 2004 oil was under $40 a barrel, and in 2003 oil was around $25 a barrel. We are lucky we didn't have fuel charges prior to 2007. We did on everything else, including airlines, long before cruise lines. You have to look at the big picture here, and high oil prices are here to stay. Sad fact but true.

[Gonzo70]

The only problem is that oil prices WILL go back up again, and then the cruise lines would just have to raise the fuel charges again. What I don't think anyone understands is that $90 barrel is still a record high, and they waited until late 2007 to institute a surcharge. Their big mistake was waiting so long. Now that we are back close to $90, everyone expects it to disappear. Not going to happen. Lets not forget that in 2004 oil was under $40 a barrel, and in 2003 oil was around $25 a barrel. We are lucky we didn't have fuel charges prior to 2007. We did on everything else, including airlines, long before cruise lines. You have to look at the big picture here, and high oil prices are here to stay. Sad fact but true.

 

Well said :)