FuelClub Discount

AMR Corp.’s American Airlines said it would accelerate its purchase of 737-800 aircraft from Boeing Co. to modernize its fleet and retire older, fuel-guzzling airplanes.

The move, which speeds up the delivery of an existing order for 70 737s and adds six to the order, follows American’s decision earlier this year to accelerate plans to begin replacing its aging fleet of 300 MD-80s. That aircraft, a workhorse airplane that American uses for most of its domestic flights, has an average age of 18 years at the airline and burns about 35% more fuel than the 737s that will replace them, American said.

Like other carriers, American, the world’s biggest as measured by passenger traffic, is responding to the recent run-up in fuel prices by grounding aircraft and reorganizing its fleet to fly more fuel-efficient planes. Aging aircraft are a problem for most of the big U.S. carriers, which kept older planes longer than they would have preferred, as they restructured following the post-Sept. 11 industry crisis.

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Oil prices could be lower than previously expected next year, but the outlook for home heating oil and natural gas signals more pain this winter, according to a government report released Tuesday.

In its August short-term energy outlook, the Energy Information Administration (EIA) said it expects crude prices to average $124 a barrel in 2009. That’s down from July when the EIA projected an average price of $133 per barrel.

“Prospects of improved oil market fundamentals over the next 18 months point to an easing in the market balance and price weakness over the near term,” the report said.

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As world crude oil prices plunge, small oil players on Thursday started implementing price cuts in their gasoline products.

SeaOil announced that it will cut by P1.00 per liter its gasoline prices starting 2 p.m. Thursday. This will be followed by Eastern Petroleum Corp. at 6 a.m. Friday.

Fernando Martinez, Eastern Petroleum president, said the prices of the company’s gasoline products will be slashed by P1.00 per liter at 6 a.m. Friday.

“We have decided that by tomorrow Eastern Petroleum will rollback gasoline prices at 6 a.m.,” Fernando Martinez, Eastern Petroleum president, told ABS-CBN’s morning show, “Umagang Kay Ganda.”

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Customers of Alabama Power Co. might see their rates go up as customers of some other Southeastern utilities have seen due to rising costs for coal and natural gas.

Alabama’s utility regulatory commission instructed its staff Tuesday to look into the amount Alabama Power is receiving to cover its fuel costs. The Public Service Commission acted after Alabama Power reported that it spent $24.6 million more on fuel in June than it recovered from its customers.

Alabama Power spokeswoman Jan Ellis said the utility has discussed its rising costs for coal and natural gas with the PSC, but it is premature to say what might happen in the coming months.

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