Whats the reason for regional fuel variances?

[NJMac]

Was flight planning for the rental 172 (sad) and in the Dayton OH area, 100LL seems pretty consistent at $5/gal. Getting south KY, TN and Atlanta area where we are going its pretty stable around $3.50/gal. Just an observation and wondering why?

 

To try and add myself to the CB club, would you ask for a discount on the wet rental rate if refueling saves the owner $10-15 / hr? I was thinking I would.

 

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[N201MKTurbo]

A lot has to do with the distance from the refinery that makes it and the transportation costs.

there is a little bit of what the customer will bear. But usually somebody will sell it near cost.

[carusoam]

Many marketing 101 classes cover this classic challenge...

Supply and demand is part of it...

non-competitive pricing tactics...  a failure of the free market... is another part...

Look up the price of 100LL at Boston's Logan Airport  KBOS... for an example of 'you aren't wanted here'

Limited manufacturing companies and distance to the customer is probably an important part...

Then there are the pilots that like to pump their own, vs. the full service price....

Stuff that comes to mind...

We have one local supply of fuel in NJ, where the airport owner tries to supply the fuel near cost, to enhance the rest of his businesses...

Look up Central Jersey Airport for that...

Best regards,

-a-

[Hank]

I'm just enjoying cheaper fuel as one more benefit of moving back South . . . .

[carusoam]

In auto fuel we see some of the same issues...

NJ has limited some of the taxes...

Exxon and others have very competitive manufacturing facilities...

Self serve doesn't exist...

Prices can change on the hour or as rapidly as they want to update the price electronically...

Supply and demand based on futures pricing on Wall Street... RBOB is the ticker symbol... West Texas intermediates, WTI and North Sea oil are priced in dollars per 35gallon drum?

Want to have a heated discussion..? Talk heating oil pricing, as winter approaches, to a Dad in the Boston area...

Interesting market forces come in the variety of improved horizontal drilling techniques, transportation costs, pipeline construction, train capacity, that kind of stuff...

The world economy is improving, even people in China are driving cars... Billions of people enjoying some form of capitalism...

even in communist countries...

Capitalist PP thoughts only, not an MBAer...(unfortunately)

We have a couple of MSers in the oil business.

Best regards,

-a-

[rbridges]

go to one of the Atlanta airports like KRYY or KPDK.  You'll find your $5-6/gal fuel.  

[kortopates]

1 hour ago, NJMac said:

To try and add myself to the CB club, would you ask for a discount on the wet rental rate if refueling saves the owner $10-15 / hr? I was thinking I would

I'd bet you'd have more success getting a rebate or discount based on committing to a block of hours. 

[NJMac]

I'd bet you'd have more success getting a rebate or discount based on committing to a block of hours. 

I always pay for instruction and rental with an AMU check. Hasnt netted me a discount yet. Ill ask about renting it dry

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[Bartman]

With regard to US crude, much of the northeast crude comes from oil shale and it is more expensive to refine. Southern and southeastern fuel comes from Texas and the gulf and easier to refine and transport via pipeline. There are fewer pipelines and more demand in the north and northeast. Add it all up and prices are higher in the northeast. 

[bradp]

Don’t forget about the state and local taxes on fuel - one of the reasons some cities have higher fuel is excise tax. 

[Cruiser]

some pricing depends on the competition at the distributor level, then the delivery costs, then the taxes, then the local profit margin. It takes about $1.00 a gallon to cover full serve costs. Some airports try to make it up on volume. 

[mooniac15u]

19 hours ago, NJMac said:

 

Was flight planning for the rental 172 (sad) and in the Dayton OH area, 100LL seems pretty consistent at $5/gal. Getting south KY, TN and Atlanta area where we are going its pretty stable around $3.50/gal. Just an observation and wondering why?

 

To try and add myself to the CB club, would you ask for a discount on the wet rental rate if refueling saves the owner $10-15 / hr? I was thinking I would.

 

Sent from my SM-G930V using Tapatalk

 

 

 

I'm not sure what your route looks like but KUYF between Columbus and Dayton is usually on the low end of the range for fuel pricing.

[RobertGary1]

Unlike car gas stations, airport usually only change their prices when they get a delivery. So if they got a 60 day supply at a good price the price will be good. If they bought at a high point their prices will be high until they sell that delivery. Car gas stations change their prices daily based on market conditions and the price they paid for what's in the tank is just a sunk cost, it doesn't really make a difference.

 

-Robert

[Danb]

There's some airport s with a fairly high fuel flow charge paid back to the airport 

[Hank]

21 minutes ago, Danb said:

There's some airport s with a fairly high fuel flow charge paid back to the airport 

I'm used to seeing those as a separate line item on the bill, just like tax and handling fees. More places to avoid. Just wish I could learn about them in advance  . . . .