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Fuel Prices For Airlines From Oil-Producing States

Thu Jan 12, 2006 12:33 am

I have a question about fuel-prices for airlines from oil-producing countries. Obviously pricing differs by country, and it would seem that several airlines have negotiated fuel rates etc. But generally speaking, what kinds of prices do airlines from oil-producing states pay? Are their fuel prices significant lower than airlines from non-oil producing states? And if so, how much lower?
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Posts: 477
Joined: Thu Dec 18, 2003 7:07 am

RE: Fuel Prices For Airlines From Oil-Producing States

Thu Jan 12, 2006 5:52 am

Depends on whether the country runs under a "market economy" or has gov't controlled prices. Canada is an oil-producing country, generally the largest exporting country to the US, but has higher fuel prices than the US. Mostly, because of taxes. Which is what would be the case for most countries since petroleum is an international commodity product with a world-wide price, at the unrefined state anyway. But airlines do definitely look at when and where the refuel in terms of local prices if possible.

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