Gaybutton Posted June 12, 2008 Posted June 12, 2008 There are two stories here. The first is that Thai Airways ticket prices are to rise due to "no choice" fuel surcharges. For the same reason, the dramatically rapid rise in fuel prices, Bangkok taxis are raising their fares by 11%. Throughout Thailand, massive protests and demonstrations are expected to shortly occur because of the rapid rise in the cost of living and people simply cannot cope with it. The first story appears in the THE NATION: _____ THAI Announces Substantial Increases in Fuel Surcharges Boonsong Kositchotethana Thai Airways International (THAI) has bowed to the inevitable again and is passing on higher costs to travelers in a new round of fuel-surcharge increases. The increases, effective on June 25, are much more hefty than the previous adjustment on April 28 _ as much as 140% on certain international routes _ as jet fuel prices have since skyrocketed. Like other airlines across the region, the national carrier is struggling to cope with high jet fuel prices, which have doubled in the past 12 months, through surcharges, hedging and other cost cuts. Jet fuel prices on Tuesday were quoted at US$166.26 a barrel on Singapore's spot market, down by $5.91 from the previous day. THAI executives said the new round of fuel-surcharge increases, however, did not cover the actual incremental fuel costs as the airline was mindful of the impacts on passengers. The calculations of the fuel surcharges were based largely on jet fuel prices of $153 a barrel. Fuel is the largest expense of THAI, accounting for 34% of its total operating cost, compared to 15-18% for wages. The increases in fuel surcharges on THAI's international routes are much more dramatic than those on the domestic routes, mostly in the range of 60-70% with a peak of 140%. Fuel surcharges on all but one domestic route are to rise by 100 baht to 850 baht per leg. But the rate on Chiang Mai-Mae Hong Son doubles to 600 baht per sector. The fuel surcharges on international routes vary from one geographical area to another. __________ The second story appears in the BANGKOK POST: _____ Taxi Fares Set to Increase By Watcharapong Thongrung The Nation Published on June 12, 2008 Bangkok passengers will have to pay 11 per cent more on average for their taxi rides if Deputy Transport Minister Songsak Thongsri approves the proposed fare increase today. Chairat Sa-nguansue, acting director-general of the Land Transport Department, yesterday said Songsak would weigh two options. One would be to keep the charge for the first two kilometres at the current Bt35 but raise the subsequent rates by 50 satang to Bt1 per kilometre, depending on the distance travelled. The other option would be to increase flag fall to Bt40 but raise the subsequent rates by a flat 50 satang per kilometre. Songsak said he would discuss the fare hikes with Transport Minister Santi Prompat before issuing ministerial regulations enforcing them. "The average per-trip fare would go up between Bt12 and Bt14," Songsak said. With their fares frozen since 1996, taxi drivers are asking for an increase now because fuel prices keep rising. Vitoon Naewpanich, chairman of a taxi cooperative, was pleased with the two options even though the operators had asked for a 20-per-cent increase by having flag fall raised to Bt40 and the subsequent rate to Bt1 per kilometre. "We need the hike, because fuel becomes more costly while the cost of the car is up to Bt700,000, from Bt400,000 a few years ago." All sectors of the transport industry are raising their over oil prices. The Supreme Court yesterday lifted the Central Administrative Court's injunction against imposing a surcharge of 3 satang per kilometre on interprovincial coach fares. Bus operators will start levying the surcharge today, worth 40-180 per cent of bus fares. Lorry operators threatened to storm the capital if the government failed to respond to their requests for relief from fuel costs by next Tuesday. About 50 lorries were parked at Bang Na-Trat Road, Km 3. More from the North, Northeast, South and Eastern Seaboard also seized the main arteries in their regions: the Asia, Friendship and Phetkasem highways and Rama II and Laem Chabang roads. "Without any action by June 17, we will invade Bangkok," said Land Transport Federation secretary-general Thongyu Kongkhan. The federation came up with a three-point proposal. Chiefly, lorries must enjoy part of the government's cheap-diesel programme and be entitled to low-interest loans for converting their engines to natural gas for vehicles. "The problem is oil prices are moving constantly," Songsak said. "If we tackle this part, will the overall problem end? A supply of cheap diesel is only a temporary solution." Quote
Guest buaseng Posted June 12, 2008 Posted June 12, 2008 Jet fuel prices on Tuesday were quoted at US$166.26 a barrel on Singapore's spot market, down by $5.91 from the previous day..... The calculations of the fuel surcharges were based largely on jet fuel prices of $153 a barrel. A report on SKY news and one or two other TV news channels at the beginning of this week said that oil industry business analysts were forecasting that crude oil would probably reach $200 per barrel in the next few months unless OPEC countries drastically increased output and stabilized prices. In the same reports aviation analysts said that if this happens the jet fuel price would double with forecasts that it would hit $300 by the end of the year. They were also forecasting that many airlines, including some well respected international carriers, would go out of business as a result. Some analysts were even forecasting that crude oil would be over $250 per barrel by the end of the year!. Quote
Gaybutton Posted June 12, 2008 Author Posted June 12, 2008 What worries me is if the day will come when even those prices look good. I may have to do some belt tightening, if I can find a belt big enough to fit around myself. Quote
Guest buaseng Posted June 12, 2008 Posted June 12, 2008 What worries me is if the day will come when even those prices look good. I may have to do some belt tightening, if I can find a belt big enough to fit around myself. At those sort of prices air travel costs are going to deter a significant number of regular visitors/tourists from Europe, the United States/Canada and the Antipodes from holidaying in Thailand and SE Asia. Even as things are at the moment, the return air fare from UK to BKK each time is over 30% of my holiday expenses! Quote
Guest GaySacGuy Posted June 12, 2008 Posted June 12, 2008 At those sort of prices air travel costs are going to deter a significant number of regular visitors/tourists from Europe, the United States/Canada and the Antipodes from holidaying in Thailand and SE Asia. Even as things are at the moment, the return air fare from UK to BKK each time is over 30% of my holiday expenses! It will cut out a lot of air travel by everyone, and will certainly harm the Thai economy without all the tourist dollars. Hope the oil countries help us out a little...and that John McCain doesn't get a chance to make it worse!! Quote
