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Do Fuel Prices Really Affect The Price Of Tickets?  
User currently offlineAruba From United States of America, joined Aug 2006, 128 posts, RR: 0
Posted (6 years 5 months 3 days 1 hour ago) and read 2786 times:

HI,
I was just reading a report on CNN about the gas prices around the world, comparing countries to how much they paying per gallon. US came in 45th cheapest for the world. But I was wondering, how these prices compare with the different pricing of tickets on different airlines around the world. For example, it said that Venezuela was paying and average of $00.12 per gallon, and Saudi Arabia was paying an average of $00.45 per gallon. But are there airlines for those countries have very cheap tickets cause of that? It said that Europe averaged about $8.00, but I don't really see a drastic difference in the prices of U.S. airline tickets and European airline tickets, even though gas in U.S. is a little more than half the amount that it is in Europe. Does that mean that these U.S. airlines are over paying U.S. customers? I ask that because the U.S. airlines are charging just about as much for a airplane tickets as in Europe and yet the gas is half the price.

It also said that the gas in Aruba: $12.03 per gallon
Sierra Leone: $18.42


Just wondering!
Excited to hear what you all are going to say!
Thanks
Will O.


B738,B752,A310,A319,A321,A343,A346,Dash8,EMB170_JFK,BDL,MBJ,SJU,AUA,DKR,JNB,CPT,HDS,IAD...But South Africa is the best!
4 replies: All unread, jump to last
 
User currently offlineSilentbob From United States of America, joined Aug 2006, 2112 posts, RR: 1
Reply 1, posted (6 years 5 months 3 days ago) and read 2766 times:

I don't recall gas being that expensive in Aruba last month when I was down there. I guess I need to go back and double check.

As for the price of gas in places like Saudi Arabia and Venezuela; the government helps subsidize prices in some smaller nations. Meanwhile, nations in Europe are far more likely to levy higher taxes on gas.


User currently offlineRwessel From United States of America, joined Jan 2007, 2353 posts, RR: 2
Reply 2, posted (6 years 5 months 3 days ago) and read 2744 times:
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Also remember that local gasoline taxes may or may not have anything to do with the tax rate applied to Jet-A, and may vary by the type of user. For example, the federal gas tax in the U.S. for normal users is about 18.4 cents/gal, AvGas is 19.4c, and Jet-A is 21.9c, unless, of course, you're an airline, in which case the Jet-A tax is 4.4c. Or if you're a farmer, you can buy gas tax free.

And the states add their own mix on top of that.

And of course the same applies in reverse to those places that subsidize fuel for various applications.

So the relative prices of autogas at retail pumps in various places tells you almost nothing about Jet-A prices at the local airport.


User currently offlineViscount724 From Switzerland, joined Oct 2006, 25459 posts, RR: 22
Reply 3, posted (6 years 5 months 2 days 4 hours ago) and read 2581 times:



Quoting Rwessel (Reply 2):
So the relative prices of autogas at retail pumps in various places tells you almost nothing about Jet-A prices at the local airport.

And as someone else mentioned, in many parts of the world taxes make up a large proportion (olften the largest) of the price of gasoline and diesel fuel used in motor vehicles. Many bilateral agreements covering international services prohibit governments from taxing aviation fuel used internationally, so fuel used on international routes will often be significantly cheaper than when used on domestic services.


User currently offlineFlyingClrs727 From United States of America, joined Apr 2007, 733 posts, RR: 0
Reply 4, posted (6 years 5 months 1 day 12 hours ago) and read 2473 times:



Quoting Viscount724 (Reply 3):
so fuel used on international routes will often be significantly cheaper than when used on domestic services.

The Koch refinery in Corpus Christi, Texas has a pipeline directly to DFW. It refines foreign oil in its refinery which is located in a foreign trade zone. Any fuel delivered to DFW for international flights not only does not have to pay aviation excise taxes, it is also exempted from any tarrifs or import fees, because it is being reexported.


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