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Fuel Prices Coming Down… For Our Cars
Like you I've been loving the low gas prices I've been paying to fill up my sport ute. I just got back from a longish trip to the backcountry to do some backpacking and ran into a little central Texas gas station where the unleaded was $2.19 a gallon. Of course it immediately made me think that we might be seeing car gas for $1-something per gallon, which makes my heart glad. Not just that, but it's good for business, which is good for everyone. Experts say that lower gas prices,… (www.flyingmag.com) More...
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FBO's are like that and any major drop will be governed by how long they stay down. State regs for regular gas suppliers require a price drop on inventory when a decrease is received and increase the same. Apparently FBO's are not governed by or just ignore this law. Most air carriers are on long term contracts and have not seen the total benefit yet of the lower prices.
We recently passed back under the $4 a gallon mark and people are flocking. It's a psychological difference for most people, and I can understand that. General aviation traffic as a whole though does seem to be back on the upswing...just my observation by sitting by the radio most days and watching the comings and goings at my FBO.
Jet's still around $6 to $7 in NJ, while car gas last night was $2.02...
How does the drop in crude prices affect the bottom line at Delta's refinery?
Depending on how they had it structured n paper but in reality, if they were buying at actual and selling high on a long term contract, it couldn't do anything but help. That said, if they had an arbitrarily lower sale price in there rather than a long term instrument, such as a cost plus or similar, I don't think it would make that much difference.
