What's with the fuel price?
Thread Starter
What's with the fuel price?
Can anyone explain how the fuel price is the same as when oil was $75US/Barrel and the Aussie dollar was 75 cents. Now the oil price is $62.00US/ Barrel and the dollar 83 cents. What's going on?
Grandpa Aerotart
While I am as cynical as most when it comes to oil companies I think that is a bit simplistic.
Because of the TEL in avgas it is made at relatively few refineries and is made in big batches before the pipes are cleaned and normal fuel production recommences.
That means that avgas does not respond to short term fluctuations, up or down, the way other fuels do.
When oil doubled we didn't see a doubling of the pump prices for car fuel...likewise avgas went up about 10% and has since come back probably 5%...last I looked, a few weeks ago, it was $1.35 at YRED...it has been over $1.40 at YRED in the last year.
The price changes lag because the batch of avgas may have been produced many months before it arrives in the airfield storage tanks.
I fully expect we will see more downwards movement in avgas.
The world is not short of oil...it is suffering from badly maintained refineries.
Because of the TEL in avgas it is made at relatively few refineries and is made in big batches before the pipes are cleaned and normal fuel production recommences.
That means that avgas does not respond to short term fluctuations, up or down, the way other fuels do.
When oil doubled we didn't see a doubling of the pump prices for car fuel...likewise avgas went up about 10% and has since come back probably 5%...last I looked, a few weeks ago, it was $1.35 at YRED...it has been over $1.40 at YRED in the last year.
The price changes lag because the batch of avgas may have been produced many months before it arrives in the airfield storage tanks.
I fully expect we will see more downwards movement in avgas.
The world is not short of oil...it is suffering from badly maintained refineries.
Sprucegoose
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At least the government doesn't vary the tax depending on the day of the week!
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Hi CC
I hate to say this Chuck but in our part of the world the going rate has been $1.50-$1.52 for a while now........maybe you are due for moe leave sooner than you think
Also the pump price for MOGAS unleaded is also a little inflated compare to the barrel / exchange rate. My guess is we should be under $1.00 and max $1.10 for unleaded at present but we seem to be $1.12 to $1.26 so I think its a valid question.
We are being thieved big time at present.
I see your girl is getting a few hours up over here.......the Bonza that is!
J
I hate to say this Chuck but in our part of the world the going rate has been $1.50-$1.52 for a while now........maybe you are due for moe leave sooner than you think
Also the pump price for MOGAS unleaded is also a little inflated compare to the barrel / exchange rate. My guess is we should be under $1.00 and max $1.10 for unleaded at present but we seem to be $1.12 to $1.26 so I think its a valid question.
We are being thieved big time at present.
I see your girl is getting a few hours up over here.......the Bonza that is!
J
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Jet A Knight;
Unlike car fuel, the federal Govt. does not have an excise on aviation fuel.
There is however, a levy that is supposed to go to CASA. This is around 2.8cents a litre - as opposed to the current car fuel excise of about 41 cents per litre and most states charging an additional 8 cents per litre.
The Avgas and Jet fuel prices are linked to the fuel prices in Singapore (don't ask me why?!?) and don't have too much in common with fluctuations in the oil barrel price or the US$.
We can't blame the Govt. for the price of Aviation fuel.
(the above rates are from memory - please comment if incorrect).
Unlike car fuel, the federal Govt. does not have an excise on aviation fuel.
There is however, a levy that is supposed to go to CASA. This is around 2.8cents a litre - as opposed to the current car fuel excise of about 41 cents per litre and most states charging an additional 8 cents per litre.
The Avgas and Jet fuel prices are linked to the fuel prices in Singapore (don't ask me why?!?) and don't have too much in common with fluctuations in the oil barrel price or the US$.
We can't blame the Govt. for the price of Aviation fuel.
(the above rates are from memory - please comment if incorrect).
Grandpa Aerotart
Probably
Would they risk TEL showing up in product samples of non leaded fuels
?
The 'excise' may only be 2.8 cents/liter but they excise closer to 20 cents/liter with GST on top.
The GST is a really insidious tax...as prices go up the tax take beomes larger too compounding the problem.
Little wonder the Govt is awash with our money.
Would they risk TEL showing up in product samples of non leaded fuels
?The 'excise' may only be 2.8 cents/liter but they excise closer to 20 cents/liter with GST on top.
The GST is a really insidious tax...as prices go up the tax take beomes larger too compounding the problem.
Little wonder the Govt is awash with our money.
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Fuel Price
Does anyone remember Gulf War I?
During War Barrel Price = $30 USD
After War Barrel Price = $9.50 USD
The bowser price only went down about 10 %.
That's a piece of the action I want!
During War Barrel Price = $30 USD
After War Barrel Price = $9.50 USD
The bowser price only went down about 10 %.
That's a piece of the action I want!
Grandpa Aerotart
J430 and GN...yes just checked with the fuel supplier at YRED and it is $1.53/liter. That includes GST hence my comment about $1.35 not being too far off, $1.38 being more accurate however.
18 odd cents a liter in taxes to Fed and State Govt. Would you call that 'user pays'?
When you look a bit closely it is quite a premium to pay for a miniscule amount of TEL. Little wonder the fuel companies that produce avgas have no plans to stop doing so....despite rumours to the contrary.
While the raw number of avgas liters produced annually is large the % it represents of all petrol fuels (excluding diesel/lpg etc) is vanishingly small...fractions of 1%...so do I believe they clean out the gear after running a batch of avgas? Nope. Do I believe it is restricted to special purpose transport? Maybe.
18 odd cents a liter in taxes to Fed and State Govt. Would you call that 'user pays'?
When you look a bit closely it is quite a premium to pay for a miniscule amount of TEL. Little wonder the fuel companies that produce avgas have no plans to stop doing so....despite rumours to the contrary.
While the raw number of avgas liters produced annually is large the % it represents of all petrol fuels (excluding diesel/lpg etc) is vanishingly small...fractions of 1%...so do I believe they clean out the gear after running a batch of avgas? Nope. Do I believe it is restricted to special purpose transport? Maybe.
Grandpa Aerotart
Tetra Ethel Lead...it is the octane improving lead additive that was banned from car fuel but remains in avgas due to no known equivalent substance.
It was banned because it is 'deadly'...but then so is the stuff they used in car fuel to replace it...in fact the stuff they put in ULP is worse from what I have read.
It was banned because it is 'deadly'...but then so is the stuff they used in car fuel to replace it...in fact the stuff they put in ULP is worse from what I have read.
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Tetra Ethyl Lead
And re the prices; I was working at YPLC when the Feral Gummint removed the excise from Avgas and it was then about 12 cents/liter cheaper than Super.
The local fuel agents comment was that it would'nt stay that way for long.
And re the prices; I was working at YPLC when the Feral Gummint removed the excise from Avgas and it was then about 12 cents/liter cheaper than Super.
The local fuel agents comment was that it would'nt stay that way for long.