Mike wrote:


Most of the smaller FBOs around here pay up front for fuel and then charge a
set price until the next load. I have no idea how the larger FBOs operate,
but their prices are always much higher to begin with and they don't seem to
be influenced much by local competition.

This is how most FBOs do it. That's why you'll see big differences in
avgas prices between FBOs when prices are fluctuating. Low volume FBOs will
often have lower prices when fuel costs are rising, and higher prices when
they are falling. On my trip this summer, I used Airnav to find the best
fuel deals. Since fuel prices were shooting up, I ended up stopping in tiny
towns in the middle of nowhere to stock up on older (and cheaper) fuel.

Auto gas works a bit differently. Since the volume is much higher and the
profit margin is small (for the local retailer), they adjust their prices to
match the market price fairly frequently. I know a guy that manages a few
stations and these days he's on the phone to his wholesaler a couple of times
a day for price updates.

John Galban=====N4BQ (PA28-180)

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