Michael wrote:
Our RHV-based club (San Jose) just increased its prices by
$2/gal/hr... They said it was entirely due to fuel prices.

Did your fuel go up by $2/gal? Because ours only went up by 40 cents a
gallon, and we just got a new load this weekend. We're paying $3.35
per gallon now. That reflects the actual price increases in the bulk
fuel. Anything significantly higher is just gouging.

Here are the numbers they mentioned (in the CFI meeting last night) - these
numbers are approximate, but they're ballpark enough for this NG thread.
Gas was costing them $2.50-$2.80 or so. This next batch will cost $4.80.
The following batch will have an additional 75c cost. When I asked my "will
the rental prices drop when the fuel price drops" I was told they they're
building in a cost so that they don't have to raise them again for the 75c
delivery. Read that however you want - but to me, I think you're right - it
all sounds like ripoff/gouging to me.

OK, I just called the 'fuel guy' at RHV. Price today for a gallon is $4.04,
tomorrow will be $4.40. He said it's definitely temporary. He added that
the flight schools in RHV are leaving their prices the same, but are adding
a temporary surcharge. He added that cheaper gas may be found at more rural
areas since they will still be using older gas and would not have been
affected with newer deliveries.

The surcharge sounds fair to me. Now whether or not the fuel companies are
gouging is a separate issue. It still hurts though. I guess it'll soon be
the $1000 burger.

Hilton
P.S.: Not sure where the FBO manager got the $4.80 and 75c numbers from.


Hilton