Financial experts are talking about oil prices that could surge to $220 a barrel. Political unrest, mainly concern over a violent power struggle in Libya, could disrupt oil supplies. As oil prices rise, airline, cruise line, and other transportation sectors consider taking action.
Most cruise lines have held off adding fuel surcharges but all have implementation plans in place once the decision is made to add them back on. Most have set somewhere between $70 and $100 per barrel as the mark at which the unpopular fee can be added on to bookings. The price of oil has risen above that level on several occasions but cruise lines have held back from adding the fee last charged in 2008.
Still, even before the current situation, speculation began on the possibility of more fuel surcharges late last year.
Some airlines, already increased fuel surcharges earlier this month and Jet Airways announced an increase today. Will others follow?
“Brent crude, one of the key benchmarks for crude oil, was up 3 percent to $109.70 a barrel in European trading Wednesday. CNBC reported that some traders think oil could surpass $200 a barrel if disruptions continue” reported the South Florida Business Journal.
Yesterday saw a fall of 8 to 13 percent as Royal Caribbean Cruises Ltd and Carnival Corp, among others were affected by tumbling stock prices.
Flickr photo by nestor galina