Ouch - $2/gal/hr

"Hilton" wrote in
ink.net:

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.


I just looked at some OLD data for fuel prices at RHV. In January of
2003, the largest fuel dealer was charging $2.69 per gallon. In July of
2004, it was $3.13. In March of this year, it was $3.26. These prices are
the discounted prices for customers with a charge account at the dealer.

The quoted $2.50 - $2.80 more in line with 2 year old fuel prices at
RHV. Have rental rates stayed the same since January 2003 through August
of 2005?

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





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Marty Shapiro
Silicon Rallye Inc.

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