CAA: GA News, "100LL prices rising, but not at auto pace"

["Stephen Irwin" <stepheni@cwnet.com>]

Friday, March 31, 2000

100LL prices rising, but not at auto pace
GA News


Flying has never been a hobby for the poor. Pilots expect to pay hard-earned
money when topping off their airplanes’ fuel tanks.

In recent weeks, however, the simple act of filling up the automobile for
the drive to the airport has become an act of frustration. That’s what
happens when prices jump 40 cents a gallon or more.

Aviation fuel prices, historically higher than auto gas, are rising at a
slightly slower pace.

In Palm Beach, Florida, the average price of 100LL was $2.55 in late March.
That’s up about 30 cents since January.

Alpha Aviation in Bellingham, Washington, say it’s seen a modest price
increase. In January, 100LL sold for $2.35 a gallon. The price on March 20
was $2.45. The FBO there said it’s difficult to say if the higher fuel
prices are keeping pilots on the ground because winter weather usually keeps
planes in the hangar.

In Chochise, Arizona, FBO owner Louise Walden said they’ve seen a 15-cent
increase since January. The price of 100LL is now $2.10 a gallon if you pay
cash, $2.15 if you pay by credit card.

“It’s not keeping anyone down,” Walden said. “They may plan ahead a little
more, but they still fly.”

Prices remain highest in the Northern United States. In Bedford,
Massachusetts, 100LL was going for $2.74 a gallon on March 20. Our cursory
survey found that the most expensive fuel on the West Coast was in Eureka,
California, where fuel is trucked in via Highway 101. Kyle Deckard of
Northern Air on Murray Field said the price of 100LL has gone up about 20
cents in the past two months, jumping to $2.60 a gallon.

“I hear a lot of complaints, but I see the pilots the next day,” Deckard
said.

Of several fuel suppliers who were queried, only two were willing to comment
on the higher prices.

Nancy J. Cook of Air America Fuel & Service Inc. in Moses Lake, Washington,
thought that the Pacific Northwest might be feeling the bite more than other
parts of the country because the Bellingham fuel refinery is still not
operating at full capacity following a fatal accident last year.

Greg Bartness from Western Petroleum said it’s possible prices will increase
even more this summer as the demand for fuel goes up, but individual FBOs
will have a lot to do with determining prices. Many FBOs, he pointed out,
are still pumping fuel that they bought months ago, long before OPEC
curtailed crude production.

Myriad factors determine avgas prices. In addition to OPEC production levels
of crude oil, environmental and health issues are responsible for the
relatively low number of refineries and oil companies that are willing to
handle leaded avgas.

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