Ways of coping with fuel price increases around the world

Some more resourceful, others down-to-earth
Straits Times 9 Jun 08;

THE UNITED STATES: Rocketing energy costs have fuelled fresh interest in the four-day work-week across the United States as a means to help employees as well as employers cope with the surge.

In Birmingham, Alabama, city officials have decided to implement a four-day week starting July 1 for some 2,400 municipal employees and later in the year for around 1,000 police and firefighters.

The move, allowing employees to work four 10-hour days, may save US$500,000 to US$1 million (S$684,000 to S$1.4 million) annually in fuel costs alone for the employees, said Ms April Odom, director of communications for the mayor's office in the city.

Some 1,600km north in Maynard, Minnesota, the Maccray School District will also start a four-day week for the upcoming school year, saving around 1 per cent of its budget, mainly from transportation costs.

The shift will mean 149 school days instead of 172, but each day will include an extra 65 minutes for instruction, according to Mr Schmidt.

AGENCE FRANCE-PRESSE

INDIA: India's crowded airline sector is flying into huge losses on the back of a surge in global fuel prices that has forced it to hike fares, slowing explosive passenger growth.

Its woes pushed the airlines to a combined loss of US$938 million (S$1.28 million) in the fiscal year to March 2008 and Aviation Secretary Ashok Chawla says the figure could double this year if oil prices remain at current levels.

'Aggressive consolidation is inevitable,' said aviation consultant Kapil Kaul, who sees a shakeout in India, where a rush of new carriers created overcapacity and led some airlines to offer fares cheaper than train tickets.

AGENCE FRANCE-PRESSE

JAPAN: Thousands of households in energy-poor Japan are taking part in an ambitious experiment to use fuel cells to light and heat their homes.

Since the Prime Minister's official residence became the first house in the world to be equipped with a domestic fuel cell in 2005, about 3,000 households have signed up to have the grey boxes installed outside their homes.

The project aims to thrust Japan to the forefront of a 'hydrogen society' that has kicked its addiction to fossil fuels and to produce affordable energy while spewing out far less of the greenhouse gas that is blamed for global warming.

The fuel cells produce electricity and hot water through a chemical reaction between oxygen and hydrogen extracted from natural gas or other fuels.

AGENCE FRANCE-PRESSE

MALAYSIA: Malaysia will review the implementation of some large government projects as part of a plan to ease the burden on state finances due to soaring crude oil prices, a government minister was quoted as saying yesterday.

The government last Wednesday announced a cut in fuel subsidies and a 41 per cent rise in petrol prices.

'Projects planned by the government were based on the previous costs before the price increase,' Second Finance Minister Nor Mohamed Yakcop was quoted as saying in Penang.

'These projects might cost more now and we need to look over them again. But the government would still go ahead with people-friendly projects that bring benefits to the people.'

He did not give details of the projects to be reviewed.

THE STAR/ASIA NEWS NETWORK.

IRAN: Drivers of luxury cars will no longer be able to buy heavily subsidised petrol from June 21, official Iranian media reported yesterday.

It is the latest change in a rationing system launched a year ago under which motorists can buy 120 litres per month at the price of 1,000 rials (15 Singapore cents) per litre, some of the cheapest fuel in the world.

Iran is the world's fourth-largest oil producer but lacks enough refining capacity for domestic needs, forcing it to import large amounts of petrol and burdening its finances.

REUTERS