Why is there such a massive discrepency in fuel prices? (100LL)

RogerMurdock

RogerMurdock

New Member
Noticed that airports, even with 30 miles of each other, have prices ranging from $8 all the way down to $4.65. I can understand certain locations across the country may be more expensive (i.e San Fran, New York), but not to an extent of a near 100% increase. Whats the reason for this?
 
Part of the problem is monopolies of FBOs at airports like SFO, JFK, LGA, BOS that have the ability to charge $8.XX/gal since there the only game in town. Sadly been like this for a while. Price gouging.
 
RogerMurdock said:
Noticed that airports, even with 30 miles of each other, have prices ranging from $8 all the way down to $4.65. I can understand certain locations across the country may be more expensive (i.e San Fran, New York), but not to an extent of a near 100% increase. Whats the reason for this?
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What's the difference in services offered between the FBOs ?


Newer GPUs?
Signature?
Newer crew cars, crew car at all?
Showers/sleep rooms
Computers that can't run windows95?
Dial up internet
Signature
Tugs that start
How many line folks
Etc
Signature
 
Haz Mat Clean Up Tax
Fuel Excise Tax
Airport Fuel Tank Replacement Loan Factor
Mileage Charge for the Fuel Truck Delivery
Airport and FBO Overhead (cumulative)

That is the short summary at our fuel pump (SeaTac is the highest in our region, we're probably a close 2nd)
 
Fuel pricing at FBOs can be interesting to say the least and vary all over the place in the same region. Now you do have to consider if there is a pipeline versus getting fuel trucked in and location in relation to a refinery and different airports and jurisdictions will charge various fees and taxes, but as far as FBOs are concerned it's also them recouping/making monies on more/better services offered. You can get discount/membership cards though too. The prices for different FBOs at the same airport can vary 20-25 cents or more. Hell, I've even seen it vary around 50 cents plenty of times. It's always at least a few cents anyways.
 
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Also sometimes the local municipalities will help off-set the cost to encourage traffic to their airport.
 
smack300 said:
Also sometimes the local municipalities will help off-set the cost to encourage traffic to their airport.
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Our local cheap spots are subsidized by the cities which they're in.

Also, if you've got an FBO like TacAir, they'll almost always win in a competitive situation since they're also a fuel wholesaler/middle man. Chases off competition on some of the airports they're on so prices stay high.
 
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At smaller airports/FBOs, they don't buy fuel very often, and they set it based upon what they paid for it. If they buy and national prices quickly rise or fall, the airport/FBO won't change theirs, and so they seem high or low in comparison.

The new owner of KHSD is using 100LL as a loss leader hoping to attract hangar renters and others to base there. People aren't falling for that - committing to a long-term expense based upon today's low price that can be raised overnight - so that's was a highly-visible fail.
 
At KRVS in TUlsa the Christiansen FBO had a monopoly on the field for YEARS. Well an AA F/O managed to get a competing FBO started... the incumbent FBO took them to court throwing an absolute FIT because they knew the price war would break their stranglehold. THey lost about 25% of their customers virtually overnight and the price of avgas and jetA plummeted from their artificially inflated prices.
After nearly a decade of BS legal wrangling, they now exist side by side and KRVS enjoys some very competitive services.
 
Went to both fbos last week when I was home...know what you can't buy on the spot at either? Gel ear seals for a DC headset.

Christiansen actually said they could get them on order in about 2 weeks. So there's that.
 
Here's another one for you. In my county the same FBO has two locations at different airports 30 miles apart. Even the same employees work both locations. Easily $1.50-$2.00 difference between the two. I
I'm sure it has to deal with one being rural and having a different tax structure for that municipality.

Even though you mentioned LL, when you start buying jet A, the prices are usually negotiated by your fuel card company and there isn't as much fluctuation in pricing.
 
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jwp_145 said:
At KRVS in TUlsa the Christiansen FBO had a monopoly on the field for YEARS. Well an AA F/O managed to get a competing FBO started... the incumbent FBO took them to court throwing an absolute FIT because they knew the price war would break their stranglehold. THey lost about 25% of their customers virtually overnight and the price of avgas and jetA plummeted from their artificially inflated prices.
After nearly a decade of BS legal wrangling, they now exist side by side and KRVS enjoys some very competitive services.
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Maybe this is one of the reasons that Bill Christiansen lost in his bid for Tulsa Mayor last year.
 
A Life Aloft said:
Fuel pricing at FBOs can be interesting to say the least and vary all over the place in the same region. Now you do have to consider if there is a pipeline versus getting fuel trucked in and location in relation to a refinery and different airports and jurisdictions will charge various fees and taxes, but as far as FBOs are concerned it's also them recouping/making monies on more/better services offered. You can get discount/membership cards though too. The prices for different FBOs at the same airport can vary 20-25 cents or more. Hell, I've even seen it vary around 50 cents plenty of times. It's always at least a few cents anyways.
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I'm pretty sure you can't put 100LL in a pipeline.
 
Pipelines and rail cars typically take petroleum to the refinery, and from there trucks take the refined product to the final retail delivery points (FBOs, fuel farms, gas stations and convenience stores.)
 
LatitudeDancer said:
But then again, it's all Bush's fault.
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Uh...yes, actually, it is, along with a Congress willing to give carte blanche on the black budget and to the drug companies, it is. ;)

Boris Badenov said:
Boooooooooo!
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Unbelievably poor treatment received at Signature Flight Support nationwide when we pull up in our Twin Bonanza.

Atlantic, on the other hand, seems happy to see me regardless.
 
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