Why is avgas not cheaper?

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ghazanhaider
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Why is avgas not cheaper?

Post by ghazanhaider »

I saw mogas at 63c/litre yesterday. Oil prices have fallen to half very roughly.

Yet I do not see even a small dent in avgas prices in Canada or nearby places in the US northeast.

Why is that?
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corethatthermal
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Re: Why is avgas not cheaper?

Post by corethatthermal »

Perhaps avgas being a very small part of the barrel and the turnover rate of storage tanks being very low, we may have to wait awhile ,,, the other reason may be that all small A/C owners are filthy rich ( like me ) and can absorb the unnecessary elevated cost without so much as a whimper ! Or both !
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broken_slinky
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Re: Why is avgas not cheaper?

Post by broken_slinky »

It's dropping in price. Whether the airport or FBO is dropping the price is another. Perhaps the fuel supplier hasn't dropped the price either?
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Kejidog
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Re: Why is avgas not cheaper?

Post by Kejidog »

It’s probably that they have not sold all the fuel in their tanks yet. The same thing happens at my club when the price changes. Either up or down. They charge what they pay until they sell or get another fill. Corethatthermal, you need the line I use on my kids when the ask for cash or something expensive. “I have no money- I own a plane”.
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Big Pistons Forever
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Re: Why is avgas not cheaper?

Post by Big Pistons Forever »

In North America more car gas is sold In one day then Avgas in 2 years. The oil companies don’t even call it gasoline, it is classified as a “specialty petroleum product”

The ordinary laws of supply and demand don’t really apply to such a low volume and highly regulated product, so it is unlikely you see a substantial drop in price
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photofly
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Re: Why is avgas not cheaper?

Post by photofly »

CAD vs USD has cratered, too.
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rigpiggy
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Re: Why is avgas not cheaper?

Post by rigpiggy »

almost all canadian avgas comes out of edmonton. the refinery does runs semi regularly, but don't be fooled anyone who uses a large amount of avgas(fbo's) is already reaping the benefits
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AirFrame
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Re: Why is avgas not cheaper?

Post by AirFrame »

Prices are falling. JetA has been coming down lately, and 100LL is starting. $1.517 in Vernon this week. www.100ll.ca
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goldeneagle
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Re: Why is avgas not cheaper?

Post by goldeneagle »

photofly wrote:
Wed Mar 25, 2020 9:54 pm
CAD vs USD has cratered, too.
so the oil comes out of the ground in Alberta, refined in Edmonton, then shipped to Canadian airports. USD doesn't play in this supply chain...
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photofly
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Re: Why is avgas not cheaper?

Post by photofly »

But the price of the crude is set in $US. But then that is true for mogas, too, which has dropped by nearly 50%. To be honest FBOs are taking such a hit right now it seems wrong to deny them a few extra cents on whatever they are managing to sell.
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rookiepilot
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Re: Why is avgas not cheaper?

Post by rookiepilot »

Evil Horrible Fuel Sellers.....
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goldeneagle
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Re: Why is avgas not cheaper?

Post by goldeneagle »

photofly wrote:
Thu Mar 26, 2020 8:59 am
But the price of the crude is set in $US.
The price you see quoted on the New York futures market is set in us dollars. The price delivered from the wellhead in Canada is set in Canadian dollars.
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Beefitarian
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Re: Why is avgas not cheaper?

Post by Beefitarian »

What's the shelf life for Avgas?

The junk mogas these days is officially only good for about 6 months.
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AirFrame
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Re: Why is avgas not cheaper?

Post by AirFrame »

Beefitarian wrote:
Thu Mar 26, 2020 11:55 am
What's the shelf life for Avgas?
In a closed tank with no significant air pocket? Indefinite. AvGas doesn't suck moisture out of the air like MoGas does.
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broken_slinky
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Re: Why is avgas not cheaper?

Post by broken_slinky »

Beefitarian wrote:
Thu Mar 26, 2020 11:55 am
What's the shelf life for Avgas?
I've heard using standard storage, 1 year is never an issue. Remember reading a report that fuel sampled 2-3 year in proper storage met all the requirements. Storage of 10 plus years was possible if it was kept at lower temperatures and measures put in place to prevent moisture. No idea what the definition of standard and proper storage are though. I'm assuming standard would be in someone's wing or gas cans where proper would be more how the refineries would handle it?
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