Carnival UK is to scrap fuel supplements on its cruise brands Cunard Line, Princess Cruises, P&O Cruises and Ocean Village.
The supplements will be dropped from October 31 for all new bookings on 2010 departures.
It will continue to be applied to new and existing bookings for 2008 and 2009 departures, but will be refunded if oil prices fall below $70 a barrel for 25 consecutive days up to five days before sailing.
The refund will be offered to customers in the form of onboard credit to the passenger’s account.
Currently the fuel supplement is £4.50 per person per day, up to a maximum of £63 per person for cruises up to 14 nights.
The move follows an announcement by US parent company Carnival Corporation to drop fuel supplements for its brands Carnival Cruise Lines, Costa Cruises, Cunard Line, Holland America Line, Princess Cruises and The Yachts of Seabourn.
However, the company has warned that fuel prices could rise, which could mean the return of supplements.