The big news today is that Delta is tacking on extra surcharges for passengers trying to utilize the frequent-flier program.

Wow, not a nice reward for your most loyal customers. But you've gotta ask yourself, what's the worst thing you'd do to cut fuel costs?

The new surcharge will take effect on August 15th and will add a $25 fee to all tickets redeemed with frequent-flier miles for the U.S. and Canada, with a $50 charge added to international destinations, including Puerto Rico and the U.S. Virgin Islands.

As we've tirelessly reported on earlier, the airlines are trying to combat high fuel prices by adding new fees to all checked luggage and taking away our delicious free snacks, even professional basketball teams aren't immune to the treachery.

It's all becoming quite a hit for consumers looking to fly this summer. You will find that flight prices are 2 to 3 times more expensive than they were this time last year. And in addition to the new fees, there will be fewer options for shopping around. Major airline mergers and canceled routes are another new trend that adds to the headache.

According to the Wall Street Journal article that broke the news, Delta aren't alone with the new plan:

Last month, AMR Corp.'s American Airlines said reinstating miles to a frequent-flier account would cost $150, up from $100. And two weeks ago, US Airways Inc. said starting July 9, it would add fees including charging frequent fliers to redeem miles, in addition to charging $15 for a first checked bag and other fees.

Also in April, travel experts said Delta's frequent-flier programs likely would see changes including a possible devaluation of some passenger miles amid the company's pending merger with Northwest Airlines Corp.

So if you were planning on redeeming those frequent-flier miles, I'd suggest you try and use them before August 15th. Hopefully you'll be available and find some place you fancy going in the next couple of weeks. Anyone like hot dogs as a July 4th vacation theme?

My idea for a new no-frills money-saving airline is to hire amateur pilots with no professional experience to fly extra large jumbo jets. I'll advertise it as 'Eh, Why Not? Airlines'. Then we'll really see how much safety is worth to the average consumer.

WSJ: Delta Adds Surcharge To Frequent-Flier Program, June 27, 2008

The idea of offshore drilling is on everyone's mind, but are President Bush and John McCain's calls to start drilling off the coast of Florida and in wildlife reserves in Alaska going to help us save at the pump?

Stephen Colbert said on his show the other night: "When I first started paying $4/gallon for gas, I didn't mind, I thought I was just getting better gas." Being the king of satire, Colbert 'sided' with the offshore drilling proponents, mostly because he hates bears.

But all kidding aside, the plan will not lower gas prices for at least 15 - 30 years. Even if both coasts, including every offshore site in California, New Jersey, and Virginia were also opened up to the oil companies, we wouldn't see 'cheaper oil' anytime soon. So why do they keep proposing it as the money saving venture we need to do?

I don't want to delve too much into conspiracy theories or political rants, but many people are left wondering if these 'offshore proposals' are meant to appease oil companies eager to get more sites before Bush peaces out for good.

The honest truth of the matter can be explained succinctly by Brian Kennedy, Senior Vice President at the Institute for Energy Research, a not-for-profit organization based in Washington, D.C. In an interview with MainStreet he says increased domestic oil drilling is a long way off from lowering our gas prices. Even if it does happen, we may only see a few cents dropped off the price of a gallon. And that's not for at least a few decades, imagine what the prices will be at that point.

One NY Times editorial even attempts to explain how the oil companies already have 68 billion acres of land with oil that they just aren't using, including other drill-able areas in the Gulf of Mexico and in the non-wildlife protected zones of Alaska.

The only clear solution, which Obama has been trumpeting, is to put the money into non-oil based technologies like greener alternatives and larger electricity grids for electric cars. But as eloquent and pro-active as Obama is, we still won't be able to shake the oil habit anytime soon. High gas prices are for Americans have become the new reality. But if you think we're complaining, take a look over at Europe.

Can McCain come up with some feasible options besides do-nothing gas tax holidays and ineffective domestic drilling proposals? I hope so.

Everyone loves a good old fashioned WallStreetFighter 'gas and oil prices' post. Show your love/hate in the comments section. As if you need to be told to...

MainStreet: Drilling OffShore, June 20, 2008
Care2: Lowering Oil Prices?, June 19, 2008
AP: Obama criticizes McCain on Offshore Drilling, June 21, 2008

The price of gasoline will continue to increase this summer, and I dare you to find me one person in this country who is happy about it. People who live in the wilderness and don't interact with society? Gas thieves? Gas cap lock manufacturers? Ok, maybe them.

You might think that gas station owners and big oil companies are loving these record high prices. But you would be wrong. We've all heard that these high gas prices are conversely affected by the sale of gasoline, because it is lowering the demand for the fuel in the market. The less people who can afford the high prices, the less that is sold.

FiveCentNickel, an interesting money blog, took a look at the Department of Energy's most recent fuel update numbers and did some crunching.

Here is the latest breakdown of what goes into the price of gas:

73% - Crude oil
11% - Federal and state taxes
10% - Refining costs and profits
6% - Distribution and marketing

For some of you, this might be obvious, but it's still an interesting breakdown to examine. The big number that gets your attention is the price of crude oil. In spite of today's announcement that Saudi Arabia will be increasing oil production, prices continue to hover around the $135 - $140 mark.

But in further detail, take a look at that 6% distribution and marketing. That percentage includes the cost of what it takes to get the gas to market plus the gas station's profits.

So as you can see your local Shell and BP aren't really the well-endowed bandits you might think they are. With the cost of trucking and shipping the gasoline to stations rising because of high gas prices (being the fixed proportional numbers they are), the gas companies are biting a similar bullet.

My solution? Well if drilling in Alaska and off the coast of Florida are frowned upon by all those environmental conservatives (polar bears like Coca-Cola, but they don't like oil?), why not get some drills and roughnecks up to the Moon. How much you wanna bet there is more oil floating in the middle of the moon (next to all the dinosaur bones) than in Saudi Arabia?

FiveCentNickel: What Goes Into Gas Prices, June 13, 2008

Today was a wild day on the Street. With jobless claims, record-breaking oil and a stock sell-off - it was one hell of a Friday.

One of the funny things about Wall Street and the stock market is that dozens of well-intentioned analysts could be screaming about 'overreactions' and 'throwing out the baby with the bathwater', but once momentum picks up on negative thinking, it's hard to stop it.

Many investors gauge the health of the economy on the unemployment percentage in the country. Today that percentage jumped from 5.1 to 5.5, a 22-year high. Investors took this as a sign the economy was weakening and recession symptoms would continue. As a manifestation of that collective fear, the Dow Jones industrial average fell 365 points by the end of the day. Investors wanted out.

According to an article from CNBC, contrary to what investors feared about the economy weakening,

many economists said the rise in unemployment was attributable mostly to more unemployed people trying to get back in the jobs market and college and high school students looking for summer work.

They really should keep the 'High School Kid Saving Up For New iPods' employment rate as a separate figure from the 'Dad Got Fired And We're Losing The House' employment rate. Then these kind of mix-ups probably wouldn't happen.

But there was a whole separate story that freaked a lot of people out today. Oil.

Crude oil prices jumped up past $138 a barrel, after sitting at monthly-lows only a few days ago (An $11 jump in one day). The sudden jump in oil prices is largely being reported as 'speculator driven', meaning these are market games meant to drive prices and make profits from trading oil. Speculator driven sell-offs or run-ups usually don't sustain those prices.

However, there is a report circulating that gives legitimacy to the claim that we will soon see $150 barrels of oil. If that 'prophesy' comes true, expect to see significantly higher gas prices. $6 a gallon as the norm maybe?

This all came as quite a surprise to many on the Street because Thursday was such a fun-loving happy day. Yesterday's market scored its biggest single day gain in almost 2 months. I heard one commenter on CNBC likening it to "when someone is about to commit suicide, they usually act happier than normal."

Probably in poor taste to make that kind of comparison, but gets the point across I guess.

What will next week bring?

CNBC: Stock Selloff Offers Good Chance To See Bargains, June 6, 2008

CNN Money: Dow Tumbles 395 Points On Oil Spike, June 6, 2008

The price of gas in France is equal to about $8.20 a gallon, and they are taking to the streets, but are they justified or just a bunch of whiny frogs?

These high prices are not a big surprise to consumers because, European prices have always been significantly higher than the U.S. This is due to half of gasoline costs going to government taxes.

Gas prices in Great Britain have jumped 17% in the past 12 months, with similar increases throughout the rest of Europe.

So, according to the NY Times, Europeans are saying, 'We don't want to get violent and unreasonable on your asses but, what more can we do?':

Highways are filled with fuel-efficient Smart cars and Minis, most cities have highly developed public transportation systems, and green-minded policies have spawned everything from special bicycle lanes to downtown congestion charges. Now the current surge in the price of oil has many Europeans asking how much leaner they can become.

What else can they do? Strike against those taxes.

Port workers are fighting with police in Marseille, truckers are holding up traffic in London and blocking ports in the Netherlands, French farmers are using tractors and pitchforks to blockade oil depots, French nurses can't afford to make home visits, and Italian travel agents can't fill their tour buses. Even some Italian and Spanish fishermen are joining the fray by planning strikes for today.

I don't really understand the fishermen one, but I'm sure it has something to do with fuel costs. Seems like the whole European continent is banding together against gas prices.

When you look at the sheer madness going on over there, you realize they have a lot more of a reason to be pissed than us Americans. Their cars are already 10 times more eco-friendly than ours and they are heavily investing in alternative fuels, along with alternative and public transport systems.

Maybe we should stop whining so much about our high costs? Fat chance. This $4 a gallon nonsense is crazy! I've had to reduce my usage too. Now I can only afford to take three baths in a vat of gasoline per week. Tough times.

New York Times: Irate Europeans Protest Soaring Cost of Gasoline, May 30, 2008

With Ford, GM, and Chrysler making some big apologies last week for lagging sales, it seems like companies making smaller cars are riding high.

The reason for the Big Three's decline in revenue was linked directly to rising fuel prices and increased environmental awareness. More people realized that those big trucks and SUVs were killing them at the gas station.

BMW's MINI Cooper and Clubman models are becoming one of a few popular alternatives. Both models, which everyone thought were cool in The Italian Job, get at least 29 miles per gallon, compared to most trucks and SUVs where 15-19 mpg is almost the norm. (pictures after the jump)

And this has been proven in MINI's sales, they are up 29.9% this year, according to Phil LeBeau of CNBC.

This thing doesn't even look that small. I could totally fit my surfboard and a corpse in there.

(MINI Clubman)

Two other brands are getting their names recognized. Tata Motors, an Indian car company specializing in ultra-cheap small cars, claims it will soon unveil an American model for only $2,500!

That's scary cheap and supposedly it won't spew black smoke and destroy the environment. Which is good, right?

(Tata Motors, the 'new people's car' looks a lot like an egg?)

And have you heard about those Smart Cars? You can park three of them perpendicular to the street curb in the space one normal sized car would take up.

(Smart Car parked)

But many people are concerned with these ultra-small cars. Can they stand up to American roadways, or will they completely crumple under the force of an SUV collision?

Well surprisingly, this tiny Smart Car was given a very good crash test rating in a recent study. Maybe that will be enough to get them on our roads in large numbers?

There is no doubt though, this summer with fuel costs consistently breaking their highest records, an economy puking up recessions, and the need for greener cars, these little guys will be adding some big revenue.

Seen any of these cars on the streets near where you live? Do you like them or are you avoiding ' a car of the future' like the plague?

CNBC: MINI is Maxing Out on Small Car Craze, May 27, 2008
Edmunds: Tiny Tata Ultra Cheap Car Will Be Least Polluting, November 2007
CNN Money: Tiny Smart Car gets crash test kudos, May 14, 2008

Maybe you're saying 'duh' to that headline, but few people realize what all these oil worries look like in number form.

Let's take a look at some of the travel statistics facing us this Memorial Day weekend:

• In the U.S., national gas prices rose today for the 17th straight day.

• The average price of a gallon of gasoline rose from $3.831 yesterday to $3.875 today.

• Last year at this time, the average was $3.23 per gallon.

• Gas stations in Alaska, Connecticut, Illinois, New York, California, Hawaii and Michigan each average over $4 per gallon.

• Wyoming and Arizona are the only states averaging less than $3.70 a gallon.
  

• According to a Deloitte & Touche (one of the Big Four auditors) survey, 12% of Americans surveyed said they are completely canceling their Memorial Day plans due to high travel costs...

• In spite of the costs, it is estimated the average American traveler will drive 91 miles this holiday weekend.

• According to the US Environmental Protection Agency, the average car on the American roads gets only 20.2 miles per gallon.

• Only 11% of Deloitte's surveyed American plan to use air travel this weekend.

• Due to oil prices and fuel surcharge fees, the average plane ticket will cost 8% more this year.

Not that we don't completely trust a big accounting firm like Deloitte to tell us what America is doing, but let us know in the comments section what your weekend plans are. Will you be changing your annual routine?

Be sure to note if you are "rich as hell" and "couldn't give a crap about oil prices", as that may affect how we view your opinion.

CNN Money: Memorial Day Travelers face headwinds, May 23, 2008

It should have been obvious: a car company heavily selling gas-guzzlers would hit a snag when oil prices flew off the charts. However, the good people at Ford are having some problems coming to grips with that very idea.

Where did it all go wrong?

The Big Three (Ford, General Motors, and Chrysler) were riding high on the SUV wave (which sounds like an incredibly dangerous metaphor) for years. Very profitable times for them and they 'practically' put all their eggs in one basket. I guess you could call that a 'bad idea'.

You see, the profit margins on SUVs and big trucks are significantly higher than compact and 'economy sized' cars. The bigger the truck, the more people were willing to spend on it, the cheaper it was to make, the more people wanted it - a nice little cycle. But now don't even mention the profit margins on those 'San Francisco-lifestyle' hybrids to these guys. It was hard enough getting them to, only now in the past few years, jump on the hybrid/alt-fuels bandwagon.

In spite of all the high oil price news and the relative certainty of $4/ gallon as a unpleasant fixture in the near future, Ford kept on saying things would be fine. According to an article on today's CNN Money:

Ford Motor Co. (F), despite repeated pledges that it would post a pretax profit in 2009, on Thursday abandoned that goal, largely because of the speed by which consumers are switching to more fuel-efficient vehicles. The auto maker said the shift is structural, not cyclical, and it will have to further cut costs and production to adjust to lower demand.

Ford's truck and SUV sales fell 18% in April versus a year ago, while GM and Chrysler posted declines of 27% and 25%, respectively.

The question one needs to ask is, 'what were these Ford guys thinking?' Ford's CEO was 'assuring' shareholders not less than 2 weeks ago that the company's sales were going to make a huge turnaround in the summer season.

Maybe they thought people would want to stockpile oil because it's becoming so expensive, and therefore ... they would need huge trucks and SUVs to carry those big barrels? Yeah, that must be it. Good guess, guys.

Are we way off base about the Big Three? Don't hesitate to enlighten us in the comments section.

CNN Money: Auto Cos Pressured As Truck, SUV Sales Wither On Gas Costs, May 22, 2008

Desperate to avoid gas price riots, Congress voted yesterday to stop filling the national oil reserve.

According to today's NYT article, the 'Strategic Petroleum Reserve' is already 97% full and yet we continue to purchase and fill it with over 70,000 barrels a day. With oil prices hovering around $125/barrel, it's becoming increasingly expensive to keep doing so.

The reserve is designed to act as an emergency backup in the event of a fuel shortage.

Speaker of the House - Nancy Pelosi said, after speaking to analysts, that this act may decrease the cost of gasoline by 5 to 24 cents a gallon.

There are plenty of naysayers, and in the spirit of ever-increasing partisanship most of them are members of the opposing party. Like this guy, who doesn't sound at all like a jerk:

But Representative Joe L. Barton of Texas (R) said the measure was meaningless. “If all the members of the House would go out onto the steps and clap our hands three times and say, ‘Down prices, down prices,’ that would have as much impact as passing this bill,” he said.

Well Joe, that plan really doesn't seem too far fetched when you think of how any other verbalization of policy effects market and oil prices. Even the utterance of the name of some Third World country and the word 'pipeline' in the same sentence is enough to make prices go up a few dollars a barrel.

Pretty much everyone agrees, that the McCain-Clinton 'gas tax holiday' was merely pandering without a beneficial solution. But is this one really any better?

Although it makes a lot of sense to stop filling the reserve when it's already 97% full, it makes even more sense to quit while it costs so much to keep filling.

This measure was passed by both the House and the Senate by a margin of 385 to 25 and 97 to 1. It also looks good on the Bush end of things. The President is unlikely to veto this measure.

In the coming weeks this plan should be put into action and then we will see if those prices tick down a bit. Right around that time, hopefully there won't be some massive pipeline news that makes us wish we had that extra 3% in the reserve. Fingers crossed!

NYT: Congress Votes To Stop Stockpiling Oil, May 14, 2008