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Avgas Coming Down?



 
 
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  #1  
Old August 30th 06, 03:14 PM posted to rec.aviation.owning
ktbr
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Posts: 221
Default Avgas Coming Down?

Sylvain wrote:
it's funny how fast these tanks get emptied and promptly replaced with
new priced fuel when the prices are going *up*...


any business (that plans on staying in business) is going to be
more sensitive to rising prices on a comodity that he must keep
stocked. If you don't plan sifficiently to cover replacment cost
you may not have enough money to pay for the next tanker load.

This didn;t used to be such a problem in the days when prices
went up a few cents here and there. But when prices can end up
being .50, .80 or even 1.00 per gallon higher in a month or two
(like last year) your next tanker load might cost you $8000.00
more than the last one and you better have the money to pay for it

Prices at the pump will start going down a lot when retailers
feel they aren't gonna get hit bad by the next spike.
  #2  
Old August 31st 06, 01:45 AM posted to rec.aviation.owning
nrp
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Posts: 128
Default Avgas Coming Down?

It is a Milton Friedman stated principal that for a commodity in a
capitalistic system, price will to follow replacement cost. This means
going up - and going down.

 




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