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
Don't sweat it Wolf. I'm sure the legal advice you received was worth every penny you paid for it.
This surcharge is not only not helping us; Tt's making customer pay no tips and lots of questions and confusions and conflicting with the additonal charge for additional passengers.
THis surcharge of 1$ on Extra button on meter is conflicting with the additional charges for additional passenger and thus angering the passengers and causing arguments and fights with drivers and get no tip. They don't care even if we explain.
Gas price is almost or over 4$ for regular gas and gas price has jumped up over 100% since 2002 and did we have meter increase of even just 50%? Hell, we didn't even have 25% increase.
Everybody in everybussiness in the world can raise price based on high cost of products but why no increase for Taxi drivers? Airlines, food cost, gallon of milk and a dozen of egg has gone almost 100%.
We should file a lawsuit over not getting meter increase.
