Fuel price problem

Jakes · Post by **Jakes** » Sun Jan 07, 2007 11:17 pm

Hi guy's, I don't want to waste your time on trivial questions, but this is something that bugs me.....the way you work out the fuel prices.

My HUB is at FAGM Rand airport in South Africa, Rand is like 5n/m from FAJS Johannesburg INTL, and tyhe airport is there to lighten the aircraft load at FAJS(in real life), the two airports are on the same hight above sea level, but the fuel prices...????.

At FAJS a pilot can refuel for 1.29 v$ per liter, but at Rand FAGM just a few miles away the fule goes for 1,67 v$. If it is at all possible and your schedules allow this, is there some way to adjust this to a more even figure.

Tanx Jakes

CAPFlyer · Post by **CAPFlyer** » Mon Jan 08, 2007 8:27 am

No. Dunno how pricing is done in your part of the world, but in the rest of it, it's done based off of multiple factors and 2 airports can have wildly different prices and only be a few miles apart for several reasons. It's the law of supply and demand.

Post by **Konny** » Tue Jan 09, 2007 10:19 pm

Actually it's just the law of coincidence

Drako · Post by **Drako** » Wed Jan 10, 2007 8:22 pm

I would be very surprised and impressed if Konny or anyone could accurately include the correct fuel prices to any fuel pump in the world.

You could calculate using the price of Oil and the countries exchange rate but then you got to calculate the regional variations and retail competition. After all that what the retailer charges at that pump or in our case the airfield is a unknown variable determined by when they last had a delivery. Sounds easy dont it

Post by **joefremont** » Wed Jan 10, 2007 10:06 pm

I think the best we could come up with is a system that calculated a price based on
1) National fuel tax on av gas (if any)
2) Distance from this airport to the closest refinery
3) The size of the airport (smaller airports have less storage and this limits supply)
4) The amount of fuel sold at this airport in the month (demand).