Wednesday 19 June 2013 17:05 UTC
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Home of the forum's fuel price league tables. Who's up, who's down?
I'm disapointed that we haven't seen worthwhile reductions recently with avgas, oil is 20+% lower than it was in April and as been more or less in a steady decline since then. Airfields don't delay hiking up the price on a rising oil price as was seen last year. But the same can't be said in reverse.
Historically when oil was $84 a barrel and a similar exchange rate avgas was around 1.75 ltr which is where it should be now!
It's not necessarily the airfield who fail to lower prices, but the supplier. Fuel for many airfields in the south enters the country via Grangemouth and the supplier adds transportation charges to the unit price, and sometimes will also 'load' this if you only have (say) 5000l, charging less per unit if you have (say) 20,000l.
What's an iPad? Do I really care?
I can say that we are very diligent when transferring charges. I think most other GA airfields are the same.
For example, in April we took a 5p hike which we passed on to the customer. May brought a further 10p rise and we chose to only pass on only 5p of that. June came along and the bulk price dropped by 10.52p - we made a 12p reduction in the sales price.
There are a couple of other points. Some places charge out at a rate reflecting what they paid for the specific fuel drop(ie whatever they were charged on delivery). Others directly reflect the sales price movement the suppliers make on a monthly basis; that is our preferred option. So, at Booker you will find that fuel prices change on the first of the month. Of course, that could mean that we make a greater margin on fuel that we bought a while back but, as you can see from above, there are times where the margin drops.
Secondly, and I quite like this idea, some places take a punt with their pricing and select a fixed rate for a relatively long period of time. Whilst this brings business risk, it can pay-off if you get the price right.
I fully agree and accept the points you've both made, But as a consumer I believe that at most GA fields the price is higher than it should be right now. ''why, I don't know'' But my point is that what really drives the end price of avgas are world oil prices, when it goes up so does avgas and it doesn't lag far behind! But when the former falls as it has done for + 3 months now the reduction is slow and not fully passed on. That's how I see it.
I can confirm what the others have said. We generally buy 36 000ltr loads, which can last between 2 - 6 weeks, depending on the weather, and we pay the price on the date of delivery. The smaller airfields will hold stock for anything up to three months.
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