SIA, BA raise fuel surcharge

Singapore Airlines (SIA) Thursday said it would raise its fuel surcharge again by as much as US$5 to cope with higher oil bills, boosting its highest levy to US$50 per passenger. SIA said the hike was needed as jet fuel prices had risen to US$80 a barrel from US$70 in July, when the last surcharge adjustment was made.

SIA is one of the world's most profitable airlines but has not escaped from the impact of higher oil prices. In the first quarter to June, the airline's net profit fell 7.9 percent year-on-year to S$235 million (US$140 million) as fuel expenses increased. The airline said net fuel costs of US$892 million accounted for 32 percent of the group's expenditure, compared with 23.3 percent the year before.

peakoil.com -> bbc.co.uk :

British Airways is to increase fuel surcharges on long-haul tickets bought in the UK for the fifth time in the past 18 months. The increase, taking effect from 12 September, means customers will pay a GBP 30 charge for a one-way ticket - up from GBP 24 - and GBP 60 on a return fare.

BA introduced fuel surcharges on both short-haul and long-haul flights in May 2004. Since then, the amount charged for a single long-haul flight has risen from GBP 2.50 to GBP 24. BA said its fuel costs had risen nearly 400% since the end of 2001 and were now costing the airline about GBP 1.6bn a year.

(2005-09-09 15:51:35 SGT) [Energy] Permalink

Indonesia to use more of its own oil

forbes.com :

The government is planning to reduce crude oil exports by up to 110,000 barrels per day (bpd) in order to increase supply to domestic refineries, an energy ministry official said. The move will automatically cut crude oil imports for refineries and is therefore expected to reduce the cost of producing fuel at home.

Last year Indonesian refineries processed about 998,000 bpd of crude oil, of which 404,500 bpd was imported and the rest was domestic crude, he said. Over the same period total domestic oil output amounted to 1.096 mln bpd, of which 488,700 bpd was exported, he said.

Although a member of the Organization of Petroleum Exporting Countries (OPEC), Indonesia has been a net oil importer so far this year due to lack of investment in tapping new reserves. Lowering fuel production costs will help the government reduce its fuel subsidy spending amid rising world oil prices. The government estimates this year's subsidy spending to swell to 138.6 trln rupiah [USD $13.5 billion], almost twice its previous forecast of 76.5 trln [USD $7.4 billion].

- Wonder why they bother to export 400+ kbpd and then import another 400+ kbpd, if they skip it they can just use it for their own use. Sure they might lose out on some foreign exchange, but they would need to spend that foreign exchange to buy it back again from the open market right?

(2005-09-09 14:12:26 SGT) [Energy] Permalink

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