From the Chicago Dispatcher, May 2008
Surcharge To Start April 28
Drivers must display informational sign before collecting can begin
By: Jonathan Bullington
The long wait is over. After suffering the sting of skyrocketing gas prices, Chicago's cabdrivers will finally see some relief as the City Council approved the gas surcharge ordinance proposed by the Department of Consumer Services (DCS).
Effective April 28, drivers will be allowed to charge an extra dollar to each fare as long as the average gas price in Chicago stays at or above $3.20, according to AAA's Daily Fuel Gauge Report (available on the Web at www.fuelgaugereport.com). As of April 25, the current average price for gas in Chicago is $3.782, according to AAA.
Preparations are underway in advance of Monday's surcharge initiation. On Thursday, April 24, DCS Deputy Commissioner Shellie Riedle met with 25 affiliation heads and independent drivers to distribute sticker signs informing passengers of the surcharge. These signs must be placed in the passenger compartment of each cab, to the right of the rate sheet, before the surcharge can be collected and cannot be displayed until April 28th. According to Riedle, it is the responsibility of the cab owner to ensure the signs are displayed. DCS will be charging $1 for each sign.
Going forward, the $1 surcharge will be in effect for as long as the average gas price stays at or above $3.20. If that average drops below $3.20 for seven consecutive business days, but remains above $2.70, the $1 surcharge will be removed and replaced with a $0.50 surcharge. According to Riedle, after five consecutive business days of gas prices below $3.20, DCS will issue an industry advisory notice that the trigger point is close. If prices remain below $3.20 two business days later, another notice will be sent out informing of the change to $0.50. At that time, owners will have to acquire a new sign notifying passengers of the $0.50 surcharge. These notices will be faxed and/or e-mailed to affiliations, licensed managers and cabdriver organizations. Additionally, DCS will post surcharge information on its Web site as well as its office on Ogden Avenue and the inspection facility on 39th Street and Artesian.
DCS has also taken steps to inform the public of the upcoming surcharge. On Friday, April 25, DCS will distribute flyers to O'Hare and Midway airports, McCormick Place and many Chicago hotels informing passengers of the surcharge. DCS will also set up a hotline (312-742-7777) where passengers can call to find out if the surcharge is in effect or not. The Chicago Dispatcher also has a hotline where drivers can get immediate surcharge information by calling (312) 437-TAXI (8294).
Before the surcharge was approved, it was first debated upon by the Transportation Committee, DCS Commissioner Norma Reyes and various members of the taxi industry. At that time, many drivers expressed their concerns over the surcharge - mainly - that the increased revenue, while appreciated, is not nearly enough to combat the financial burden drivers face. Instead, these drivers testified that a fare increase would be of more assistance. Another main concern was with the increases in the range of fines attached to the surcharge ordinance - $75 minimum and $1,000 maximum, up from $25 and $750 respectively.
So we are stuck with the $1 surcharge until May 2009:
----- Original Message -----
From: Wolfgang J. Weiss
To: Thomas R. Allen
Sent: Wednesday, April 30, 2008 11:31 AM
Opec says oil could hit $200
By Carola Hoyos in London
Published: April 28 2008 13:56 | Last updated: April 28 2008 20:03
Opec’s president on Monday warned oil prices could hit $200 a barrel and there would be little the cartel could do to help.
The comments made by Chakib Khelil, Algeria’s energy minister, came as oil prices hit a historic peak close to $120 a barrel, putting further pressure on global economies.
His remarks suggest Algeria wants Opec to continue to resist calls by US and European leaders for the cartel to pump more oil to help ease prices. But Mr Khelil blamed record oil prices on the weak dollar and global political insecurity.
He told El Moudjahid, Algeria’s government newspaper: “I don’t think that an increase in production would help lower prices, because there is a balance between supply and demand and the stocks of gasoline in the United States have recorded a surplus and are at their highest level for five years.”
He added: “The prices are high due to the recession in the United States and the economic crisis, which has touched several countries, a situation that has an effect on the value of the dollar. Each time the dollar falls 1 per cent, the price of the barrel rises by $4 and of course vice versa.”
Some US senators have pinned the blame for high oil prices directly on Opec and Saudi Arabia, its largest and most powerful member.
In a letter to President George W. Bush last week, they said Riyadh had cut its oil production by about 2m barrels a day over the past three years, even though oil prices had continued to rise.
Copyright The Financial Times Limited 2008
Oil hits fresh high as biofuels rethink looms
By Carola Hoyos in Rome and Ed Crooks and Javier Blas in London
Published: April 22 2008 23:52 | Last updated: April 22 2008 23:52
Expectations rose on Tuesday that soaring food prices will provoke a rethink of support for biofuels in Europe and the US, as the price of oil hit a new high of almost $120 a barrel.
Biofuels produced from crops such as corn and soya provide a small but fast-growing share of road-fuel supplies, and had been expected to make an important contribution to meeting growing demand.
But Gordon Brown, the UK prime minister, said on Tuesday the country could push for a change in a European Union target to increase the proportion of biofuel to 10 per cent of road fuels by 2020.
Malcolm Wicks, the UK energy minister, went further, telling the Financial Times that the targets should be reviewed because of mounting concern that they are contributing to food shortages.
The remarks will reinforce perceptions in the oil market that government support for biofuels, without which US and European production is unlikely to be commercially viable, is at risk.
Kevin Norrish of Barclays Capital said that two years ago the assumption was biofuels would provide a significant share of the fuel supply – enough to make up new US demand for petrol.
“The realisation now is that this may not happen, because of the impact on food prices,” he said.
Biofuels still have strong political support in many countries. Angela Merkel, Germany’s chancellor, said last week: “Those rising global food prices have nothing to do [with] biofuels.”
But Rob Bailey of Oxfam said: “We want the government to stop adding fuel to the fire by subsidising the diversion of land to biofuels production.”
Agriculture diplomats are concerned that governments are focusing on biofuels as the main reason for rising food prices. They argue that the use of agricultural land and crops for fuel is only part of a mix of problems including higher demand in Asia, climate change, declining growth in farming productivity and water scarcity.
The European Commission has been defending its 10 per cent target. Asked by reporters on Monday whether the EU was reconsidering its position on the biofuels target, a spokesman said: “The answer is very simple. No.”
However, Mr Brown said in a statement on Tuesday, ahead of a meeting on food prices with industry leaders and development experts, that if a UK government review of the impact of biofuels now under way “shows that we need to change our approach, we will also push for change in EU biofuels targets”.
The review was launched in February and is due to deliver initial conclusions next month, with a full report by the end of June.
Speaking in Rome, Mr Wicks voiced the most open criticism yet from a British minister of European and US policies to encourage the use of biofuels.
“It would be ridiculous if we fill up our cars with 5-10 per cent of biofuels if the consequences are that somewhere else in the world people are not being fed,” he said.
“We need to have a second look [at the EU’s biofuels target]. I think we will.”
Environmental and social groups have intensified their campaigns against biofuels as food prices have risen, arguing that they are diverting production away from food and animal feed.
Until now the government’s policy has been to support the increased use of biofuels.
The renewable transport fuel obligation, compelling suppliers to provide 2.5 per cent of their sales as biofuel, took effect last week. The proportion rises to 5 per cent in 2010.
Copyright The Financial Times Limited 2008
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Footnote: I tell all my customers to keep the buck if they want, they can save it or burn it later as heating fuel.
wjw
