Over the last couple of years, I found myself paying extra for many things. The most noticeable for me was travel tickets as I travel a lot.

The airlines excuse was always rising petrol prices up to a $150 a barrel. And hence we were paying an extra 5%, which later became 10% then 15% etc..

Now that the oil prices are at decade low and expected to be like that for a long while, do we expect prices to drop?
I don't think it will.

Next time we meet up we can goto Qantas with some signs :)

The airlines got into a panic when oil reached over $100 a barrel and
they forward bought fuel at various prices in the $100 to $120 range.
So they are now taking delivery at those prices, so don't expect to
see much in the way of reductions.

They got caught like some of the speculators when the price fell.
By the time they can buy again at the cheaper prices it probably be
on the way up again.

One US airline went bankrupt because of hedging.

Fellow_Human

"Now that the oil prices are at decade low and expected to be like that for a long while, do we expect prices to drop?"

I doubt oil prices will stay at the decade low you mention for very long. The cost of extracting oil is already increasing as the easy reserves are exhausted, and that increase will be permanently reflected in the retail price sooner rather than later I would guess.

Carbon pricing will do nothing to reduce the cost either, which, while painful, is as it needs to be. Enjoy cheap fares while you can. It won't be long before the cost of air travel truly reflects the cost to the environment.

Hi Bronwyn,

I understand your point although the airlines (among other industries) only refer to petrol prices as the only justification for the airfare rises. regarding the cost to the environment, I don't subscribe to the view that higher prices resolves it. I believe concerned industries should mandate companies to invest % of its revenues on developing low carbon emission (and absorption) technologies. There is many success stories around the world.

Boazy,

How r u? I have never taken part of a march or similar activities because it never works. Its a good 'anger management' tool though to vent some steam so I might come and watch you march :-)

Hope you are well.

F.H.. participating in a demo as an observer is truly a rush :)

I was on the 'front line' against the barracades chatting to the lady policewoman.. and on the roof above me some morons were hosing down all the police.. quite an experience.

I saw the true face of absolute leftist hatred though.. one bloke was so utterly consumed with vitriolic hatred.. I mean it was so blatantly raw and vulgar..he cursed the mounted police with all the intent of a man who, if he had the means would have happily carved off the cops head. (no..not a muslim.. just a leftoid)

Ur right.. they don't 'work' :) I also know this, in fact at the G20 one.. I reckon 60% of the participants had totally different causes from the planned one. There was a group of MEXICANS whining about some problems in Mexico.. the mind boggles.

I learnt a lot about police strategy, who they had where..and what they would do 'if' such and such happened.

I never cease to be amazed at how passionate the hard core leftist rentacrowd is.. when preaching to itself.. because no one else listens much.

But for me.. such events are always good for conversations on the day, sharing one's faith and talking about later.. a 3 fold blessing!

Oh.. the kickboxing? haha.. its mainly cardio mate.. all the moves without the pain. Though 2night my training partner hit the pad a bit hard (with his foot) and it richoceted into my eye.. *ouch*

Petrol prices are awesome here now.. $1.199/L for "Plus" ethanol blend.

yes.. me well..hope you r 2.