Why isn't Avgas getting cheaper ?

[PompeyPaul]

Guys, I'd be interested in your business case for reducing the price of a niche commodity where the volume sold did not appreciably change despite a 50% rise in prices?

Given how quiet Farnborough is now days, it looks like the amount sold has collapsed due to the "R" word. Remember when you sometimes had to ask your next frequency to telephone Farnborough to tell them you'd changed because you couldn't get a word in anywhere ? I change to Farnborough now and it seems I've got the whole frequency to myself....

[Mariner9]

Well even if flying has decreased due to the R word, there's still no incentive to reduce Avgas prices unless any of the refiners/distributors/sellers feel that they are losing market share due to price. In fact, if anything, a significant drop in demand will increase transportation, storage, finance and infrastructure unit costs.

[batninth]

Guys, I'd be interested in your business case for reducing the price of a niche commodity where the volume sold did not appreciably change despite a 50% rise in prices?

Ah, price elasticity I believe. Of course, if we listen to Mr Porter, there is always the threat of competitive pressure, so your business case holds as long as you're the only player in town. But when the airfield only a few miles away drops it's prices then your cost per litre holds but on very few litres sold.

[Min Sink]

Have a look on www.TheHangar.co.uk - UK AVGAS Price Data for the cheapest prices. Anyone can update so go and fill in you local airfields price.