Despite their similar makeup, aviation and automotive fuel prices can vary wildly.
Although they are both petroleum products, 100 octane low-lead aviation gasoline and standard 87 octane unleaded automotive fuel prices vary significantly, with "avgas" being more expensive. According to 100LL.com, a website that monitors aviation fuel prices, the average price for avgas as of June 2010 was $4.77 per gallon in the Upper Midwestern United States, with higher prices in the South and West. The national average price of regular unleaded gasoline at the same time was $2.70 per gallon.
Misconceptions
There are many misconceptions about avgas prices in contrast to automotive fuel prices. One such idea is that avgas is refined from a higher grade of oil. This is not true, as all gasoline, including automotive and aviation grades, are refined from light sweet crude oil. Another misconception is that avgas is subject to tougher government regulations. This is also erroneous, as all fuel is subject to the same rigorous testing methods.
Demand
One of the largest factors in the price difference is demand: Consumers used 186 million gallons of avgas in 2008. In contrast, consumers used 314 million gallons of regular automotive gasoline. The lower demand for avgas contributes to its higher price, as sellers must charge more to obtain a return on their investment.
Geography
Location is also a major factor in both avgas and automotive fuel prices. Prices can vary widely between states, with avgas seeing a much larger price gradient than automotive gasoline. The reasons for this are varying regulations between states, distance from refineries, and quantity available in a given location. Despite the wide variation in avgas prices, they are still uniformly more expensive than auto fuel.
Refining Process
The refining process is also a major factor in higher aviation fuel prices. Unlike regular auto gas, avgas contains lead, which makes a special refining process necessary. Also, avgas has a 100 octane rating, which is much higher than 87 octane regular gasoline, or even 92 octane premium. The higher octane rating leads to a steeper cost at the pump.
Benefits
Although the relatively high price of avgas is a bane to many pilots, there are many benefits to the higher cost. One such benefit is the lower impact on the environment, as a higher price encourages consumers to use less fuel. Another benefit of the high cost is alternative energy exploration, as the steep cost of avgas encourages manufacturers to invent aircraft capable of running on alternative fuels.
Tags: fuel prices, automotive fuel, automotive fuel prices, also major, also major factor
