Cost of Flying Lessons

[thing]

What is the real reason the AVGAS price is so high now?

Because we're British and putting up with crap is what we're good at.

[24Carrot]

I can't speak for the US, but recently the BBC did a breakdown of auto fuel prices in the UK:

BBC News - The cost of petrol and oil: How it breaks down

I have seen comments that most US housing would become almost worthless if US auto fuel prices rose to typical world levels. Can't see Obama doing it this year...

[thing]

Talking about fuel, I may have the details wrong here but apparently North Sea oil which is ours we sell to the US because it's high grade stuff, then we buy all the low grade stuff off the Arabs at daft prices.

I'm sometimes at a loss to understand UK economics, like how we nit pick about a miilion here and there for a hospital ward but allow Vodaphone to get away with a six billion pound tax bill. You would think people were taking back handers here and there, perish the thought.

[riverrock83]

UK Fuel tax rates are here: http://www.hmrc.gov.uk/budget2011/tiin6330.pdf
Then add VAT.

So my maths (Provider = distribution, refining, maintenance, etc):

if the AVGAS price is £2.10 per litre, that means that each litre consists of:

Duty: 37.7p (18% of total)
Provider: £1.373 (65% of total)
VAT (20%): 35p (16% of total)

so HMRC gets 73p per litre.

Comparing to Unleaded petrol at the BBC's £1.34 per litre:
Duty: 58p (43% of total)
Provider: 54p (40% of total)
VAT (20%): 22p (17% of total)

HMRC gets 80p per litre

Actually not that much in it.

[24Carrot]

I'm not sure how to link to a pdf, but the June 2010 IAOPA has an article:
"Getting the Lead out" (pages 38-39)
You should be able to google it.

It says only two avgas refineries are left in Europe, and neither is in the UK.
Perhaps the lack of competition, and transport costs, are factors here.

I don't know what my linking problem was earlier, but this link seems to work now:
http://www.iaopa.eu/mediaServlet/sto...n10/p38-39.pdf