Avgas Coming Down?

Kingfish wrote:
ktbr wrote:

Jon Kraus wrote:

Here in Indianapolis I have seen Mogas go down from $3.20 a gallon to
$2.50 and it appears that it will keep on dropping.

On the other hand at my home base I just filled up for a trip and still
are paying $4.50 a gallon. Has anyone noticed if Avgas is coming down
too? Maybe it has to do with not making 100ll as often as Mogas. What
say you?

While I'm sure everybody's Avgas fuel quotes are going down (ours are)
you still have the fuel in the tank that you paid big $$$ for that has
to go. There are not that many airports (if any) that go through 10K
gallons of 100LL as quick as a typical gas station.



I heard on the radio this AM industry analysts are predicting gas
prices to be "closer to $2 than $3 by Thanksgiving". That might be good
news for LL consumers, but I'm too cynical to think the boutique fuel
market will respond as quickly, if at all, to a drop in mogas prices. I
am curious about what's behind this predicted drop though - reduced
demand after the summer is one thing, but this seems more like a market
adjustment IMO.

Kingfish
Turbine analyst *NOT* a fuel analyst

That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.

--

Regards, Ross
C-172F 180HP
KSWI

Just paid 4.60 @ kral I only got enough to make the flight to A20 gas was
4.20 there. Mogas in Ca. is still over 3.00. I dont believe you will see gas
at 2 with crude in the $60.00-70.00 range. It would have to drop to 40.

"Jon Kraus" wrote in message
. ..
Here in Indianapolis I have seen Mogas go down from $3.20 a gallon to
$2.50 and it appears that it will keep on dropping.

On the other hand at my home base I just filled up for a trip and still
are paying $4.50 a gallon. Has anyone noticed if Avgas is coming down
too? Maybe it has to do with not making 100ll as often as Mogas. What
say you?

Jon Kraus
'79 Mooney 201
4443H @ UMP

We went from $5.15 down to $5.06 (just last night).

-Robert


Jon Kraus wrote:
Here in Indianapolis I have seen Mogas go down from $3.20 a gallon to
$2.50 and it appears that it will keep on dropping.

On the other hand at my home base I just filled up for a trip and still
are paying $4.50 a gallon. Has anyone noticed if Avgas is coming down
too? Maybe it has to do with not making 100ll as often as Mogas. What
say you?

Jon Kraus
'79 Mooney 201
4443H @ UMP

Ross Richardson wrote:
Kingfish wrote:
That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.

A responsible oil company should charge you as much as you are willing
to pay. Oil is provided by for-profit companies. Oil prices are held
down by competition. "gouging" implies that either the companies
illegally got together and fixed prices or you don't understand free
market enterprise. If you think the oil companies are making too much
money, switch sides, buy some oil stock and share the profits.

-Robert

Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.


A responsible oil company should charge you as much as you are willing
to pay. Oil is provided by for-profit companies. Oil prices are held
down by competition. "gouging" implies that either the companies
illegally got together and fixed prices or you don't understand free
market enterprise. If you think the oil companies are making too much
money, switch sides, buy some oil stock and share the profits.

-Robert


A very well written response Robert. Its refreshing to know at least
some people actually understand free market economics.

Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.


A responsible oil company should charge you as much as you are willing
to pay. Oil is provided by for-profit companies. Oil prices are held
down by competition. "gouging" implies that either the companies
illegally got together and fixed prices or you don't understand free
market enterprise. If you think the oil companies are making too much
money, switch sides, buy some oil stock and share the profits.

-Robert

Exxon-Mobile has been good to us.

--

Regards, Ross
C-172F 180HP
KSWI

"ktbr" wrote in message
...
Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market "overpriced"
itself. Nor sure what that meant. But, if we were gouged then the oil
companies need to refund our money. I know - fat chance.


A responsible oil company should charge you as much as you are willing
to pay. Oil is provided by for-profit companies. Oil prices are held
down by competition. "gouging" implies that either the companies
illegally got together and fixed prices or you don't understand free
market enterprise. If you think the oil companies are making too much
money, switch sides, buy some oil stock and share the profits.

-Robert


A very well written response Robert. Its refreshing to know at least
some people actually understand free market economics.

I know a couple of people that started making their own biodiesel and bought
oil company stock several years ago; they are quite happy.

"Ken Finney" wrote in
:


"ktbr" wrote in message
...
Robert M. Gary wrote:
Ross Richardson wrote:

Kingfish wrote:
That is what this newscast said this morning - the market
"overpriced" itself. Nor sure what that meant. But, if we were
gouged then the oil companies need to refund our money. I know - fat
chance.


A responsible oil company should charge you as much as you are
willing to pay. Oil is provided by for-profit companies. Oil prices
are held down by competition. "gouging" implies that either the
companies illegally got together and fixed prices or you don't
understand free market enterprise. If you think the oil companies
are making too much money, switch sides, buy some oil stock and
share the profits.

-Robert


A very well written response Robert. Its refreshing to know at least
some people actually understand free market economics.

I know a couple of people that started making their own biodiesel and
bought oil company stock several years ago; they are quite happy.





That's just the thing, (the free market economy) prices rise, the oil
companies get happy, they want to get happier so they produce more, get
more efficient, open capped wells, etc.; Other companies want to be
happy too, so they either get into the oil business, get into the
oilfield business, or come up with some gadget that makes getting the
oil out of the ground cheaper, quicker, and more efficient...

But wait! There are people who have been working on things to "replace"
oil for years, but oil was just too cheap to compete with... But NOW
they can sell the hybrid cars, and the cheap little Chinese cars that
get 40mpg, work on that magic bio-diesel or hydrogen fuel cell project.

Oh, and forgot to mention that people don't drive/fly as much with gas
almost triple the price of 5 years ago....

All of the above ends with an oversupply of the product and falling
prices. Event the price-fixing antics of OPEC cannot keep the price
artificially high forever.

All in all, I agree with $2/gal mogas (or lower) by christmas... when
the cycle will start all over again. But the problem is, the cat is out
of the bag. The oil companies know we will pay $3+ for gas, so the
first sign of an excuse like Katrina and her sisters and watch out!

--
-- ET :-)

"A common mistake people make when trying to design something
completely foolproof is to underestimate the ingenuity of complete
fools."---- Douglas Adams

Ross Richardson wrote:
Robert M. Gary wrote:
Exxon-Mobile has been good to us.

Indeed. They have spent billions on oil exploration to keep our oil
supply available. They also hold a good share of the market and create
competition that keeps prices down. If Exxon were to leave the market,
there is no doubt prices would rise until someone else filled that
void.
Of course, if you don't like the company I'm sure they would not send a
hit-man to your house if you chose to buy your gas elsewhere.

-Robert

Robert M. Gary wrote:
Ross Richardson wrote:

Robert M. Gary wrote:
Exxon-Mobile has been good to us.


Indeed. They have spent billions on oil exploration to keep our oil
supply available. They also hold a good share of the market and create
competition that keeps prices down. If Exxon were to leave the market,
there is no doubt prices would rise until someone else filled that
void.
Of course, if you don't like the company I'm sure they would not send a
hit-man to your house if you chose to buy your gas elsewhere.

-Robert

I just have some of their stock, I don't necessarily buy exclusively
from them. I have a friend that on principal will not buy Exxon-Mobile.
Just watch whose trucks fill up gas stations. Can be anyone. You never
know really whose gasoline is in the ground.

--

Regards, Ross
C-172F 180HP
KSWI