FuelClub Discount

United Airlines, the second largest U.S. carrier, increased almost all domestic airfares by 3-5%, due to surging fuel costs, The Associated Press reported Friday.

It was the third increase in the past two weeks, The AP reported, for United (NYSE: UAUA), which like the U.S.’s other major carriers, is struggling to maintain a viable business model amid the largest increase in aviation fuel costs since the world’s second oil shock in 1979-80.

Shares of United fell 82 cents to $14.58 on the news in Friday afternoon trading.

United’s latest fare hike takes place just two days after Delta Air Lines (NYSE: DAL) CEO Richard Anderson said domestic carriers will need to raise tickets 15-20% just to break even at existing fuel prices, The AP reported.
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Continental Airlines and most other major carriers matched fare increases of as much as 5 percent round trip Friday, following the lead of United Airlines.

The move comes as domestic carriers are looking for new revenue to combat escalating fuel costs.

Those costs this month helped propel Delta and Northwest airlines to announce a merger and have spurred talk of broader consolidation in the industry. But it remained unclear Friday how Houston-based Continental might participate.

The airline is still considering its “strategic options” in regard to mergers, Continental Chief Executive Larry Kellner told employees Friday in his weekly recorded message. He said he wanted to address rumors that have been swirling.
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What does the Grangemouth oil refinery do?

The plant, on the Firth of Forth, separates crude North Sea oil into usable commodities like petrol, diesel, aviation fuel and heating oil. The attached petro-chemical plant produces plastics like polypropylene and polyethylene, used by many industries.

How important is it?

Grangemouth is Scotland’s only major refinery and its main fuel supplier. Most Scottish filling stations and many in northern England depend on it, as do Scotland’s airports. It accounts for 10 to 15 per cent of Britain’s refining capacity, processing about 210,000 barrels of North Sea crude oil a day. It produces nine million litres of fuel a day - enough to fill the tanks of about 200,000 small cars.

What impact will the 48-hour shutdown have on petrol and diesel supplies?

Malcolm Wicks, the energy minister, has said he “cannot guarantee” that stations will not temporarily run out. However, there should be no problem with shortages as long as motorists do not start to panic buy. Analysts have warned prices could rise to ?1.50 per litre.
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The UN is to halt food handouts for up to 800,000 Palestinians from today because of a severe fuel shortage in Gaza brought on by an Israeli economic blockade.

John Ging, the director of operations in Gaza for the UN Relief and Works Agency, which supports Palestinian refugees, said there had been a “totally inadequate” supply of fuel from Israel to Gaza for 10 months until it was finally halted two weeks ago. “The devastating humanitarian impact is entirely predictable,” he said.
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Company spokesman Richard Longden said: “If the general public buy fuel normally, there won’t be a problem.”

He added: “There will be disruption but we are doing everything in our powers to minimise any disruption there will be to the motorist.”

The strike over proposed pension changes is due to start on Sunday.
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Hungarian oil and gas group MOL Nyrt plans to open 70 MOL petrol stations in Austria by the end of this year, Zsolt Hernadi told the Austrian current affairs magazine profil in an interview.

MOL opened its first petrol station in neighbouring Austria on April 1 and Hernadi sees this number growing to ‘at least’ 100 by 2010, by purchasing and also by building new stations, according to profil.
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