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Old 9th June 2008, 09:36 PM   #4 (permalink)
Dave
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Default Lycoming to approve 93 octane auto gas for O-360 & IO-360



Mike Isaksen wrote:
> "David L" wrote...
>> There is no real reason that FBO's can not get un-tainted
>> gasoline. The alcohols are added in when the truck is filled.
>> The difficulties are procedural not strategic...

>
> Yes and no. Most trucks have residual when they return to the farm to
> refill. Since most FBOs can't take the entire trailer, they will pay a
> premium to the trucking firm for a dedicated partial load. That markup is
> more than a few cents (more like 10 to 50 cents) per gallon, and then you'll
> still get a small mix of residual.
>
> The FBO is also not taking a trailer (or seven) a week, so every run is a
> special. That means the trucking co will fit the FBO in with no guarantees.
> So the FBO will need to schedule early (so as not to run out) and therefore
> will take even a smaller load. Sometimes the load is so small the FBO will
> have to take a mini, making the FBO pay for gas not taken.
>
> Also, many of the Quicky Marts make more profits from the food and coffee,
> than from the gas pumped. The FBO will not sell at such small margins, so
> all said and done the Mogas will likely be a dollar to 1.50 higher than the
> Quicky Mart. Now add in what Kyle B mentioned about the Mogas cutting into
> the FBOs Avgas sales and it's a loser all around (for the FBO).
>
> Damn those pesky details!
>
>

I really don't think that things are as gloomy as you put it.
i suspect that the fuel trucks are pretty capable of emptying their
trucks at their retailers. When 3000 gallons of fuel is ordered, I
suspect that 3000 gallons are put on the truck and delivered to it's
destination and the truck is emptied. Even if there were a few gallons
remaining, that amount of alcohol in 1000+ gallons of fuel is in the noise.
From the FBO's point of view, if there is a market for mogas, they will
be able to provide a service for it. If multiple FBO's sell mogas, then
competition will make the prices reasonable.
There are always those FBO's that really mark up their prices because
they have a captive crowd and those who would rather sell more fuel for
less of a price but make more money/profit in the end.
From the looks of it, there are more places in the country that provide
un-tainted fuel than sell tainted so the alcohol transport issue would
be a mute point for them.
I wouldn't be surprised if the major manufacturers of engines provided
approval for using mogas in their engines, some FBO's would switch to a
mogas only operation if the sales are there and they can't/won't provide
services for both types of fuels.

At this point this is all speculation on both sides of the fence, but I
can only see the good in offering alternative fuels for our aircraft at
a fair price.

I for one would fly more if the fuel were more reasonably priced and
help support the FBOs which offer affordable fuel.

Dave


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