Fuel Surcharges

One thing that people will noticed when booking for airlines tickets is the amount of fuel surcharges imposed on these flight, most of which will indicates that the airlines trying to be creative in collecting more money as per purchase of their services.

While AirAsia pushes in with these surcharges on May 3 onwards, on the rivalry site, Firefly announced the obvious that they are not going to add fuel surcharge to their tickets. However, those sector that is fuel intensive is now been plugged out of service due to “service realigning exercise” that will burn less fuel than now.

With the budget 2012 announcing in a few hours time, I wonder if it will bring any changes to the fuel prices as it seems to be the surprise of the past during every budget tabling.

One thing I have also noted is that other than the airlines, there are other sectors who has also ride the band wagon of these surcharges.

Fuel Surcharge notice from PosMalaysia

It seems that the so called fuel surcharges is getting into the pockets of the consumers and these company indirectly transfer the fuel cost out of their products and services into a chargeable item within the transaction.

Of another note, due to the fire at a refinery in Singapore recently, 11 contracts that consist of 30 supply load could not be fulfilled. Out of those that was involved, it is believed that these contracts is now in transfer options which has since been taken up by Petronas to supply more than half of these contract. These options will definitely benefits the local O&G contract which was transacted at a higher market price and was not under rationalisation deal and discount from the fuel supplier. Will these shift the option price of the local O&G demand market or will this be translated as adhoc purchase other than those in the demand market? And out of the 11 contracts, at least 6 is directly related to fuel surcharges.

On the consumer front, there were many voices in shouting at these surcharges, consumer would have no other choice but to take them or leave them. It is sad that the airlines are still a monopoly market of the few but people here is hoping that local outfits such as MasWings and Hornbill Skyway will take up the gap left in the surcharged allowed market.