In just one year, the price paid at the refinery for jet-A in the U.S. has climbed 92.7 percent, reaching the $4-per-gallon mark early last month. The refinery price is a good place to start looking at fuel prices because it roughly equates to the cost of jet-A paid by FBOs before various fees, taxes and markups are added to decide the retail price. The refinery price doesn’t change a lot around the U.S., but the taxes, fees and markups do vary and are the reason for disparities in retail prices.
Respondents to AIN’s fuel cost survey at AINonline.com last month indicated that they are worried about fuel costs and numbed by jet-A prices at major metropolitan airports. They also expressed bafflement at how prices can vary so much between large- and small-airport FBOs and noted that the higher prices don’t necessarily correspond with high-level service. One pilot wondered if the big chains, some of which are owned by private-equity firms and others publicly held, have such a lock on their markets that they don’t have to compete on price and are simply inflating their margins to generate higher revenues for their financial backers.
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