startknob
Posts: 148
Joined: Tue May 11, 2004 11:43 pm

Q: Importing Cheaper Fuel From International Legs?

Fri Aug 12, 2005 4:42 am

With oil prices skyrocketing and different fuel taxation in different countries it seems to be a tradeoff to get some more Jet A1 into the fuel tanks where it's cheaper, then fly back to where the price is higher and tank less there. For example: AFAIK in the late 90s LOT's 734s and 735s serving WAW-FRA never tanked at FRA.

>> Q1: Do you know if Airlines "bunker" fuel on certain legs because it's cheaper there?

On the other hand all this "excess fuel" must be moved back into the high-price-country and therefore costs extra fuel on the way back.

>> Q2: Where is the optimum trade-off for such fuel-"re-importing" and is there a formula for the pilots how many excess fuel to order with what variables (price diff in $/liter / length of the leg back / weight of "excess fuel" / add. fuel burn transporting the "excess fuel" / aircraft type / avg. crew age...  Wink?

Any enlightening comment are welcome. Thanks in advance.
When playing cat and mice it's imperative to know, who's the cat.
 
Danny
Posts: 3715
Joined: Thu Apr 25, 2002 3:44 am

RE: Q: Importing Cheaper Fuel From International Legs?

Fri Aug 12, 2005 4:49 am

Yes, but currently no one buys fuel at WAW (except if absolutely necessary) as due to monopoly it is very overpriced there.
 
Pope
Posts: 3995
Joined: Thu Mar 24, 2005 5:57 am

RE: Q: Importing Cheaper Fuel From International Legs?

Fri Aug 12, 2005 5:06 am

The Wall Street Journal this week had an article on the spread between crude oil and Jet-A. The price of Jet-A has been rising even faster than the price of crude. The difference between crude and the refined product is called the "crack spread". The crack spread for Jet-A is at its highest points ever.
Hypocrisy. It's the new black for liberals.

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