FuelClub Discount

European automakers’ efforts to persuade more Americans to buy cars with diesel engines are turning into an uphill battle because of rising prices at the pumps.

German manufacturers Volkswagen AG, Daimler AG and BMW AG have launched initiatives to make diesel cars more popular in the U.S. as they bet Americans will eventually overcome the perception that diesel engines are loud, smelly and polluting. But their plans appear to be stalling on the back of soaring oil prices.

“The recent price hike is a major blow for the companies’ initial plans to offer more cars with diesel engines in the U.S.,” said Global Insight analyst Roman Mathyssek. He said more-focused marketing efforts along with the diesel engine’s superior fuel efficiency still might be able to win over American customers, if the price for diesel eases again.
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Key milestones in the dollar price of crude oil from below $2 in 1970 to Monday’s record $139.89.

- 1970: The official price of Saudi crude oil is fixed at $1.80 per barrel.

- 1974: The price passes $10 after the first oil shock, sparked by the October 1973 Arab-Israeli war.

- 1979: Oil passes $20 as the Islamic revolution in Iran causes a second oil shock.

- 1980: The price tops $30 for the first time and $39 in early 1981 at the height of the war between Iran and Iraq.
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Here’s a shocker: Electricity bills are heading up. Way up.

Utilities across the USA are raising power prices up to 29%, mostly to pay for soaring fuel costs, but also to build new plants and refurbish an aging power grid.

Even more dramatic rate increases are ahead. The mounting electric bills will further squeeze households struggling with spiraling gasoline prices.

“Consumers now face a tough reality on electricity,” says Mark Cooper of Consumer Federation of America.
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US Airways said it is canceling the leases on aircraft scheduled for delivery, charging for checked baggage, introducing a new in-flight beverage program and increasing fees associated with employee guest and parent travel programs.
“Our industry is profoundly challenged by the dramatic increase in fuel prices, and we must write a new playbook for running a profitable airline in this new and challenging environment,” Chairman and Chief Executive Doug Parker said in a news release.

The airline said jet fuel costs have nearly doubled in the past year, driving up annual energy expenses by $1.9 billion. The company reported a profit of $427 million last year. But fuel now accounts for 39% of total expenses; it was 14% in 2000.
Roughly 300 pilots, 400 flight attendants, 800 airport employees and 200 staff members will be eliminated from the company’s ranks, US Airways said.
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According to the oil producers’ cartel Opec, the blame lies with speculators in the international markets. But Tony Hayward, chief executive of BP, describes that view as “a myth”.

He argues that the main cause is the tight balance between global supply and demand.

BP’s new Statistical Review of World Energy - a key information source for many people in the industry - highlights what has been going on.
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Dozens of lorry drivers in France brought rush hour traffic to a standstill in Paris’ financial district on Tuesday in the latest strike against the rising cost of fuel.

It is what the French call “Operation Snail” - the latest of its kind in recent months as fishermen, farmers, lorry and taxi drivers try to pressure the government into helping them face the oil crisis.

Lorry drivers are demanding cheaper fuel for professional use and want the price to be fixed for a full 12 months from the start of the year. Gerard Enel of the European Lorry Drivers Union said: “We want to be heard - the situation is getting out of control. Soon we won’t be able to drive our lorries anymore. We will keep trying to negotiate to get the price of fuel down because it is becoming totally impossible for us to manage.”
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