BA may hike fuel surcharge

BRITISH Airways is reviewing a possible rise in its fuel surcharges after crude oil surged to a new peak of $51.95 a barrel in New York. Industry expert Platts thinks it could reach $60.

BA is charging £2.50 extra on short flights and £12 on long journeys. It said in July that its annual fuel bill would rise from £922m to £1.15bn.

Oil prices have risen $10 a barrel since. Germany's Lufthansa last night raised its surcharge from €2 to €7 (£5) per flight.

Lower-than-expected US stock levels pushed crude to record levels. It later eased to $51.70, but traders fear it is establishing a new level above $50.

In London North Sea, crude hit a record $47.94, up 81 cents. These prices threaten a new wave of cost increases for industry.

UK winter gas prices fell from Tuesday's all-time peak of 80p per therm. Gas for January delivery eased to 74p, still more than double last year's price.

The average first-quarter price fell from 67.5p to 64p.