Nov 17, 2008 11:37 am US/Eastern
Gas Prices Plummet, But Fuel Surcharges Remain
MIAMI (CBS4) ―
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Gas prices are coming down, but gas price-related surcharges often remain.
CBS
South Florida gasoline prices are in a virtual free fall, but one thing which doesn't seem to be coming down is the surcharges businesses imposed when gas prices were sky high. Retailers who hiked delivery charges, blaming $4 a gallon gasoline, seem to be in no hurry to remove those charges now the price of gas has been cut in half.
CBS4 news partner The Miami Herald surveyed a number of small business owners who had imposed surcharges, and found most had no plans to abandon them anytime soon.
Some said they are worried gas prices might rise again, but others said they need to recover losses in other areas and simply can't afford to abandoned the fees imposed over and above regular delivery fees or service prices.
Businesses like pizza parlors and florists claim they imposed the fees to help delivery drivers, who usually pay for their own gas, but despite the fact prices for unleaded regular dipped below $2 Monday, for the first time since 2005, the relief for those drivers remains in effect.
One set of drivers has been forced to abandon the extra fees; Miami-Dade county has canceled surcharges allowed cab drivers due to high gas prices. Fees of up to $3 per trip were dropped this month, and Miami-Dade officials say passengers should notify the county if they are still charged.
Larger businesses that imposed fuel surcharges are starting to cancel them. Carnival cruise lines has ended the fees, and as part of a pre-announced policy, has refunded the fees charged on future sailings in the form of on-board credit for passengers. The change covers all brand names owned by Carnival.
Miami-based Royal Caribbean has canceled the fees for 2010 sailings, but fees for 2009 sailings remain in effect, costing a couple $140 for a 7-day cruise. The company is considering refunding some fees if fuel prices continue to be low.
Airlines have varying policies about the fuel surcharge. Some have canceled it and kept ticket prices stable, while others have canceled the fees but incorporated the money in regular fares.
Florida Power and Light, which imposed fuel charges with state approval, has actually sought an increase in fuel surcharges, claiming its costs continued to rise after the last state approved fee increase. However, the utility has delayed its request claiming that while an increase is still needed lower fuel prices will reduce the amount.
The utility plans to return with a fuel surcharge request.
CBS4 news partner The Miami Herald surveyed a number of small business owners who had imposed surcharges, and found most had no plans to abandon them anytime soon.
Some said they are worried gas prices might rise again, but others said they need to recover losses in other areas and simply can't afford to abandoned the fees imposed over and above regular delivery fees or service prices.
Businesses like pizza parlors and florists claim they imposed the fees to help delivery drivers, who usually pay for their own gas, but despite the fact prices for unleaded regular dipped below $2 Monday, for the first time since 2005, the relief for those drivers remains in effect.
One set of drivers has been forced to abandon the extra fees; Miami-Dade county has canceled surcharges allowed cab drivers due to high gas prices. Fees of up to $3 per trip were dropped this month, and Miami-Dade officials say passengers should notify the county if they are still charged.
Larger businesses that imposed fuel surcharges are starting to cancel them. Carnival cruise lines has ended the fees, and as part of a pre-announced policy, has refunded the fees charged on future sailings in the form of on-board credit for passengers. The change covers all brand names owned by Carnival.
Miami-based Royal Caribbean has canceled the fees for 2010 sailings, but fees for 2009 sailings remain in effect, costing a couple $140 for a 7-day cruise. The company is considering refunding some fees if fuel prices continue to be low.
Airlines have varying policies about the fuel surcharge. Some have canceled it and kept ticket prices stable, while others have canceled the fees but incorporated the money in regular fares.
Florida Power and Light, which imposed fuel charges with state approval, has actually sought an increase in fuel surcharges, claiming its costs continued to rise after the last state approved fee increase. However, the utility has delayed its request claiming that while an increase is still needed lower fuel prices will reduce the amount.
The utility plans to return with a fuel surcharge request.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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