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Oil Prices

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tlak

08-12-2005 05:40:35

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The oil companies posted their 1/4 profits at 3-5 billion each company. The energy bill that was just pasted gave them a 4 billion tax break. The news had a spokes person from the oil companies answer to this tax break and she said it was to get the fuel to market and future supplies. So if you run a business, isn't the cost of getting your product to market already figured in the price?

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Cynicism Runs Rampant

08-12-2005 06:24:56

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Re: Oil Prices in reply to tlak, 08-12-2005 05:40:35

It seems to be more and more common for companies to add "service fees" and other dubious costs into their bills, which I feel should be counted as their cost of doing business. The telephone and electric companies are the worst in passing off this S##t as business expense. Look at the added taxes on your telephone bill, and it sure doesn't benefit me to provide electricity or internet service for the poor or misfortunate. There should be a law that regulated companies like utilities must cut back advertising before asking for a rate increase. TXU keeps asking for, and the state keeps giving it rate increases, same goes for the telephone service. Let them prove that they have cut their costs before taking the easy way out.

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Dan

08-12-2005 06:55:25

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Re: Oil Prices in reply to Cynicism Runs Rampant, 08-12-2005 06:24:56

Yeah - I sent some packages UPS the other day and was shocked to see and additional "Fuel surcharge" on the receipt. Isn't that supposed to be included in their normal shipping charges?!?!

Dan

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john in la

08-12-2005 10:29:11

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Re: Oil Prices in reply to Dan, 08-12-2005 06:55:25

A fuel surcharge is a way to adjust the rate on a daily bases based on what fuel is selling for that day.

See it would not make a difference if fuel was $1.00 or $10.00 a gallon as long as it stayed the same every day. The daily change in the price is why they need a surcharge.

A company bids/sets a rate for what they will charge to haul a box X pounds and X size from point A to point B. This rate may be in effect for a year or more.
Then fuel goes up .10 a gallon today down .05 a gallon tomorrow and back up .25 the next day. No way to set a rate if you do not know what your expenses will be tomorrow.
So they set a rate based on say $1.00 a gallon fuel cost. Then add to their rate to cover the fuel for cost over $1.00 a gallon. They call this a fuel surcharge.

Even your elect bill has a fuel surcharge. Have you seen your elect bill for this month yet?????

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Dan

08-12-2005 11:08:25

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Re: Oil Prices in reply to john in la, 08-12-2005 10:29:11

That makes sense John - it just dosen't seem right when you are standing there paying for it :)

Dan

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Sam#3

08-12-2005 09:35:35

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Re: Oil Prices in reply to Dan, 08-12-2005 06:55:25

Most of that stuff is marketing hipe. Given the 'Oh! that's Ok.' attitude of most consumers the businesses add a surcharge then in a few weeks drop it and increase the posted rate. Then add a surcharge and on and on. The oil companys have done(are doing) it for thirty years.

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08-12-2005 08:29:36

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Re: Oil Prices in reply to Dan, 08-12-2005 06:55:25

That is everyones way of putting it to you, as far as I know, most utilities are regulated as to the price they can charge, but nothing about surcharges. As far as I know the ICC has to give UPS permission to raise their rates, with the surcharges, they get around that. One company I deal with started adding a .20 fuel surcharge on every invoice they write, why?, they have a program that allows me to deduct freight charges if I pay by the 10th and order over $100.00, the fuel surcharge is not deductable. The fuel surcharge is another way for this company to stick it to their customers.

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thefarm@llion.org

08-12-2005 07:53:39

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Re: Oil Prices in reply to Dan, 08-12-2005 06:55:25

No. Fuel surcharges fluctuate based on the price of fuel. This is common for everything shipped sea, air or surface now days. Sorry, but that�s the way it works.

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720Deere

08-12-2005 18:46:59

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Re: Oil Prices in reply to thefarm@llion.org, 08-12-2005 07:53:39

Fuel surcharges are a real and fair way for companies to provide competitive pricing yet recoup any loses that they may suffer due to fuel price increases. That being said, the UPS surcharge is bogus!

Here is why I feel that way: I work for a very large heavy construction company. Our fuel usage peaks at as much as 30,000 to 40,000 gallons per day. We buy all of our fuel through market futures. Right now we are paying $1.147 for off-road diesel fuel. Add $0.47 per gal for taxes and you have road fuel. UPS uses much more fuel in a day than we probably use all year long. You better believe that they have their prices locked in for an extended period of time. Eventually the allocation will run out and prices will be adjusted. At that point, the surcharge is real, but until then it is pure profit!

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steveormary

08-12-2005 09:59:14

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Re: Oil Prices in reply to thefarm@llion.org, 08-12-2005 07:53:39

Something like shop supplies on your repair ticket.

steveormary

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