Hertz Rental Cars will no longer charge an extra fee to fuel cars returned with less than a full tank, according to Hertz Chairman and CEO Mark Frissora in an interview with FOX Business Network this afternoon.

“Instead of charging $7.99 a gallon, we are going to bring it down to price at the pump,” Frissora said. He said he hopes this will lead the industry to having more honesty when it comes to gasoline prices.

When it comes to how gas prices are affecting the rental car business as a whole, Frissora said the impact isn’t as big as one might think. Although the company is experiencing a downturn in its business segment, the leisure segment of Hertz is up  6% from last year, which Frissora said is fueled by international travelers. Hertz has 24% more international customers now than it did this time last year.

“We think that’s driven by the euro, obviously,” said Frizzora, who said travelers from Europe, China, India, and Japan were fueling the business.

Because of this international appeal, Frissora said Hertz is fairly insulated from the downturn in the market, and since the company broke away from Ford, they have increased profits and organic growth.

Although Hertz’s stock is down, the company generated $800 million in organic growth in the last 18 months, and pretax margins have gone from 5.2% to 7.6 %, according to Frissora.

“There’s no reason at all while our stock should be down, but because we have tough headwinds and macros, people feel that we are in a consumer travel-related business and we’ve been hit accordingly,” Frissora said. “But we’re fairly insulated because we are global.”

Hertz may also be getting better deals when purchasing cars for their fleet. Frissora said that when car companies have trouble selling vehicles, they often give companies like his a better deal.  

“We aren’t seeing inflation from the car manufacturers right now, so it’s kind of good in terms of negotiation for 2009 model years,” Frissora said.

Frissora said as environmental awareness has grown, the “green” collection of hybrid automobiles in the Hertz fleet has expanded 35% since last year.