E'splain to me also why you folks in Wisconsin, Iowa, and the rest of the
midwest are getting your 100LL for $2.50 a gallon or so while I'm paying
$3.50 with the refinery just across the central valley.
Base price (pre-tax) wholesale, 100LL is the same here as mogas. I know
this because I buy transports of mogas for our farm and my friend in the
crop dusting business we use buys transports of 100LL. Both of us buy
pre-taxes. Current mogas at the stations around here is $2.14, KSTE 100LL
is $2.98, the difference is FBO markups, extra transportation costs for the
smaller quantities of avgas delivered, and the shopping power of your FBO.
We're in the central part of the state, Koch has a pipeline coming down to
us from Minneapolis. The eastern part of the state get's fuel from Green
Bay and a pipeline coming up from Chicago. Drive 20 miles east of here and
you get eastern fuel which is 10 cents cheaper than the fuel Koch is pumping
to us from Minneapolis. Koch just likes to screw us, or they like our
money, or we're too stupid to fill up east of here. Probably a little of
both.
I can actually get a transport from Green Bay (95 miles) $0.04 cents per
gallon cheaper than I can from the Koch terminal which is just 20 miles
away, that's $400 that stays in my pocket.
Wisconsin mogas tax is 31.1 cents per gallon, nearly the highest state tax
in the nation. I think the Federal tax is 14.3 cents. The Wisconsin state
aviation fuel tax is only $0.06 (I think CA's is $0.18) and Federal is
$0.194, so Wisconsin's total aviation fuel taxes, lacking any local taxes,
are actually less than our mogas taxes. There have been times lately that
you can fill up at a local self serve FBO cheaper than you can at the gas
station across the street.
$1.47 actual wholesale price per NY NYMEX
+0.165 cents shipping/handling NY to WIS
+0.194 Uncle Sam
+0.06 Wisconsin tax
+0.00 local fuel tax
=$1.889 wholesale delivered after tax FBO price
+$1.091 FBO markup
=$2.98 current FBO price KSTE
Take out all but $0.05 per gallon shipping cause the refinery is right
across the valley, add another $0.12 state tax, and it leaves your FBO
about $1.606 per gallon to pay local taxes/fees and themselves.
Jim
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