Avgas prices

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GL
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Avgas prices

Unread post by GL » Wed Jan 04, 2012 11:28 am

Avgas costs around 14.50 per litre with VAT. This is nearly 40% more than car petrol. Yet avgas has none of the petrol taxes like the road users levy, third party insurance etc etc.
My very rough guess is the raw material price of petrol is around R4.00 and the taxes are another R4.50 and for avgas (where is our avgas made - still Durban?) around R7.00. So the margin on a litre of petrol is R2.00 and on a litre of avgas is R6.00 or 300 % more!! :evil:

Can anyone give me more accurate figures than my wild guesses. And tell me what controls the price of Avgas at the pumps as it seems the sellers can choose the price they want.
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Re: Avgas prices

Unread post by Kevin McCormack » Wed Jan 04, 2012 12:28 pm

Guy,

As I understand it Avgas is unregulated thus allowing retailers to set their own prices to some extent (similar to diesel in RSA), and also understand there is no production thereof in RSA due to the fact that it contains lead, however this latter requires verification. Having said that, what bothers me the most is why it is more expensive at FAVG (close to where it is imported) than at smaller airfiels in Gauteng!!
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Re: Avgas prices

Unread post by bullet » Wed Jan 04, 2012 12:45 pm

I was told that the production of avgas has been resumed in Durban (but I have not verified it).
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Re: Avgas prices

Unread post by paulincapetown » Wed Jan 04, 2012 1:55 pm

Problem is most people see flying as a rich mans game and I think we will find it hard to solicit support from the general public on this issue - Suppliers know this so don't really care. Actually, I am surprised avgas has not gone up even more. Why they have stopped ( for the moment) at R14.50 a lt I don't know

It seems like no one challenges the suppliers on Avgas pricing :twisted: :twisted: :twisted: - pls correct me if I am wrong on this point

Out of interest, where is AOPA on this issues??

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Re: Avgas prices

Unread post by Jim-J » Wed Jan 04, 2012 3:04 pm

And..... just imagine how much more flying would be done if the price was around the R10 mark !! What a saving that'd be!
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Re: Avgas prices

Unread post by tjop » Wed Jan 04, 2012 5:33 pm

I think we should ask Carte Blanche to investigate. Refueled at Wonderboom yesterday....I nearly had a heart attack!!! R 15 vs the R 11 at Kimberley and Upington where I normally refuel. This is daylight robbery and we as pilots should not tolerate this anymore. In the mean time, my thoughts are with all my fellow aviators (and your purses) that operate out of Wonderboom. I hope a change will come soon for you.
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Re: Avgas prices

Unread post by barryzw » Wed Jan 04, 2012 7:26 pm

Charles prince airport outside Harare Zimb... avgas just gone up to us$2.15 per litre, at todays rate of zar8.1 to the green back makes it ZAR17.40/litre :shock: not too mention the landing fees of us$25..and...and..
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Re: Avgas prices

Unread post by Christie » Wed Jan 04, 2012 8:29 pm

Opening a can of worms, lets go for it.

I do business in the fuel industry, and as you are aware, prices vary according to magesterial zones, that being said, Uppington is one of the most expensive zones in SA but AVGAS there = R 10 excl/lt. Durban is a 1A zone, which means the "cheapest" and so is Cape Town, but in Cape Town area Avgas around R 14.50/lt. It comes down to 1 thing only - PROFIT to the license holder. Retail licenses is not dished out (exept if you are previously disadvantaged - for the youngsters, this is a term used to ride a wave of wich you were no part of before you birth :mrgreen: ) so not too many outlets leading to the retailers thouht of mind "you want it, I have it, I make the price and whatever it is, you will pay"

I can go on for pages, but enough said..................

As a matter of interest, after the production companies to the endusers of petrol and diesel, there is a total margin of around R1/lt, with that R1 many costs must be carried and plenty people must try and break even or make a cent or 2 profit. Guessing Uppington not getting there transport for free, would be in the region of about 70-80cents per litre from DBN, that works out (@ 0% margin) to around R9/lt, you can do the maths to whatever you pay for your Avgas. (sounds like a profit of about R5 - R6/ltr - I WISH I MADE THAT ON FUEL, would probably fly a Citation Mustang then :lol: )
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Re: Avgas prices

Unread post by randomcycling » Wed Jan 04, 2012 8:34 pm

I think the carte blanche story is a good one.....

you can submit your story here:

http://beta.mnet.co.za/carteblanche/Sto ... x?ShowId=1

I would fly 50% more if the price was R10/L..... AMO will get more business, aircraft owner will make more money etc etc....

With prices like this the whole industry suffers....
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Re: Avgas prices

Unread post by paulincapetown » Wed Jan 04, 2012 8:42 pm

Does anyone know where AOPA is on this ?
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Re: Avgas prices

Unread post by Dan » Wed Jan 04, 2012 9:15 pm

thats how communists work ,, get the pic,,price themselves and every thing out of the market and boom its all over then we sit under the tree and wait for handouts,,
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Re: Avgas prices

Unread post by transwahl » Wed Jan 04, 2012 9:24 pm

Just for interest...R12.02 total at FAVV at the moment.
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Re: Avgas prices

Unread post by PRDT » Wed Jan 04, 2012 9:31 pm

Viva GL and Team! Please do take this further?

I need help from those who know these things...

Just to clear something: On Mogas we pay a Road Accident Fund levy and road maintenance and infrastructure tax, right? This equates to some substantial amount I once heard. How can AVGAS be more expensive then? What are the taxes payable on AVGAS? Or dare I say we pay the RAF when filling the aerie?

Furthermore I also believe AVGAS is "less refined" ie. comes out of the line of refinery before Mogas which still has to undergo another step (?). Is this true? If so then surely AVGAS's base price should be less?

I heard these rumours but don't know enough. I JUST HATE THE DAYLIGHT ROBBERY
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Re: Avgas prices

Unread post by NickG » Thu Jan 05, 2012 9:43 am

I bet Guy's pricing break down isn't far off.

Perhaps Guy, you should consider publishing a regular name and shame Avgas price league table in your mag.
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Re: Avgas prices

Unread post by siege1 » Thu Jan 05, 2012 11:24 am

Avgas at FAGM is going up to R16.23 a lt including VAT as from tomorrow

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