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10

AVGAS 100 LL cheaper today than in 2004

05 February 2009

This is something you did not think was possible?

We recently got a statement from a customer that oil-companies did not reduce their prices of AVGAS 100 LL now when the price of crude oil is so low.

This made us to investigate if this statement was correct. The current price for AVGAS 100 LL at Stockholm Bromma airport (ESSB) is 1.37 Euro/liter inclusive all taxes etc., or free from taxes etc. 0.78 Euro/liter. Our unleaded AVGAS 91/96 UL is currently priced at ESSB at 0.71 Euro/liter also exclusive taxes etc. .

Interesting is that if we go back to December 2004, when crude also was around 40-45 USD/barrel the price for AVGAS 100 LL then was 6.30 SEK/liter. With the SEK/Euro rate at that time, one Euro = 9.00 SEK, the price in December 2004 was 0.70 Euro/liter. At that same time the price for AVGAS 91/96 UL was the same, i.e. also 0.70 Euro/liter.

So taking 0.71 Euro/liter today and compare with 0.70 Euro four years ago, makes the prices almost equal. However during the same 4 years period inflation has increased in total by about 10 %.

The current higher price for AVGAS 100 LL compared to unleaded AVGAS 91/96 UL is mainly due to the high cost of lead and higher costs of handling a leaded fuel product in an else unleaded fuel world.

So to summarize the price for AVGAS in Sweden in February 2009  is actually about 10 % lower than it was in December 2004 exclusive taxes etc .

SO ENJOY !

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