Jet Fuel Price Drop?

[Ben W]

Has the price of Jet Fuel come down over there? Actually, regular fuel as well for that matter? I filled up this morning for $1.99 a gallon which is down from $4.39 a gallon 4 months ago.

Just wondering if the fuel surcharge was still in place?

Cheers,

Ben

[Andy N]

The surcharges have all come down across the industry as far as I'm aware. Much more slowly than the way they went up mind you

I think the price of jet fuel has gone down $2 a gallon in the past few months.

[Greg McDonald]

From NEWS.COM.AU:

QANTAS stands accused of price-gouging on its fuel surcharges for lucrative routes to the UK and Europe after it refused to pass on the full reduction from the falling cost of jet fuel.

Research by CommSec shows that passengers on long-haul flights are being overcharged on the fuel duty by about $80.

"While jet fuel prices have more than halved over the past five months, ticket prices to Europe, the US and Asia are only down by 20-25 per cent," Craig James, of CommSec, said.

The international surcharge still stood at $160 compared to a "fair" level of about $80, he said.

"The fuel surcharges on domestic and short-haul flights are now back to the levels prevailing in mid-2005," James said.

"But surcharges on long-haul flights to Europe and the US are up to $100 higher than they were in April 2005 - even though fuel prices are at similar levels."

The findings highlight intense competition on domestic routes, where keen-eyed travellers are more sensitive to price hikes.

"If you're paying $200 a ticket and there's a fuel charge of $40, it seems a substantial amount and you notice it," Savanth Sebastian, another CommSec economist, explained. "But if there's an extra $80 on a flight costing $2500 are you really going to notice?"

It is not the first time Qantas has charged international travellers more on the fuel surcharge.

In 2006, the surcharge jumped from $98 to $185 on various international routes but the domestic surcharge remained unchanged.

"The fuel price didn't change in that period so it's very strange the fuel surcharge jumped so high for no apparent reason," Sebastian said.

"The surcharge peaked at $210 in January this year so Qantas has made some cuts - it's just that they haven't been as substantial as they probably should have been."

Qantas did not comment on the figures yesterday.

[Greg McDonald]

BUDGET airline Virgin Blue will eliminate its fuel surcharge on domestic flight airfares and cut the surcharges for Pacific Blue trans-Tasman and Pacific Island flights following a dramatic fall in the price of jet fuel.
Virgin Blue will drop its $19 fuel surcharge for a one-way domestic flight.

The fuel surcharge for Pacific Blue and Polynesian Blue one-way international flights will fall by $10 to $25, effective December 31.

Chief executive Brett Godfrey said the move reaffirmed the company's commitment to "keeping the air fair''.

"We base our decisions on fuel surcharges on a floating average - not the (oil) spot price - and now that we have seen a consistent reduction in that it is only fair and right to pass those savings onto our guests,'' Mr Godfrey said in a statement.