Fall in oil prices benefits drivers and flyersBA slashes some fuel surcharges on longer routes

12 January 2007

 

Cars in a traffic jam

A fall in the cost of crude oil has finally resulted in some good news for both motorists and air passengers.

Supermarket chain Tesco has cut fuel prices to match rival Asda after crude oil dropped below $54 a barrel.

Asda dropped the cost of diesel for the second time this week by 2p a litre to 87.9p. It has also capped unleaded petrol at 84.9p, down a further 1p.

A Tesco spokesman said: ‘Wholesale costs continue to fall, so we'll be dropping prices to pass the benefits on to our customers with immediate effect.’

Surcharge cut

The falling oil prices have also prompted British Airways to cut its fuel surcharge on some long-haul routes.

However, its surcharge of £8 per flight on short-haul routes will remain unchanged.

BA says the fuel surcharge on long-haul routes under nine hours will be reduced from £35 to £30 per flight.

Destinations affected by the cut include Washington DC, New York, Dubai and Antigua.

But the fuel surcharge on BA’s longer-range services – such as routes to Australia and South Africa - will remain at £35 per flight. The airline says this is because of the higher fuel consumption on these flights.

Fuel costs

BA Commercial Director Robert Boyle said: ‘The cost of oil has reduced in recent weeks and therefore we believe it is right our customers benefit from lower prices on shorter flights.

‘Reducing the fuel surcharge on some of our long-haul flights means that the amount customers pay better reflects the cost of fuel to BA for their specific flight.

‘Despite the recent drop in oil price, our fuel costs remain a real burden. It is our second largest cost after employee costs.’