Advanced warning - Fuel price increase coming
We've just received our latest fuel price update from our suppliers for June and it has risen substantially. The result will be a rise in the price of fuel of approximately 30 pence per litre.
We know many of our airport users charge their customers or group members by the hour, and fuel costs are included within this, so wanted to provide you with as much warning as possible in case those rates need to be adjusted.
We currently have around 15,000 litres left from the previous delivery, and will take a new delivery on 1st June which will be at the higher price. Once we've sold through the older stock, we will adjust our price accordingly.
UL91 and 100LL will continue to be price matched as we are expecting deliveries of both this week and they remain at a similar wholesale cost.
We will communicate out once the prices change.
Thank you for your understanding.
FAQS
WHEN WILL THE PRICE INCREASE?
We have about 15,000 litres to sell through which normally at this time of year would take 7-10 days, but will depend on the weather, flying activity, and buying habits.
WHAT WILL THE NEW PRICE BE?
It's likely to be about 30p per litre higher than now, but we aggregate fuel prices between UL91 and 100LL to ensure prices remain the same so is dependent on the outcome of the calculation once both fuels have been delivered.
WHY IS AVIATION FUEL INCREASING AT A HIGHER RATE THAN ROAD FUEL?
In normal times, watching the prices at the petrol stations is a good indicator of how aviation fuel will go, as both are normally linked pretty directly to oil prices. However, recently, with HGV driver shortages, and issues with global shipping, some fuel suppliers have to take decisions on whether to service aviation or road fuel. It seems pretty apparent that GA often takes lower priority when delivery capacity is constrained, pushing prices up.
DO RISING PRICES MEAN BLACKBUSHE IS MAKING MORE MONEY FROM FUEL, CAN'T YOU JUST REDUCE YOUR MARGIN?
We don't take a percentage markup on fuel, we simply add money to cover equipment servicing and running costs, and then a fixed pence per litre markup. This means our markup on fuel remains the same whether prices go up or down, and doesn't artificially inflate the price you pay.
WHAT IS BLACKBUSHE DOING TO REDUCE FUEL PRICES?
We have a fixed contract with BP to provide fuel and equipment. Our contracted price with them is linked directly to the Platts global oil price index. It is based on a prior month average. When prices are going up, this is usually good, as price increases are slower to feed down to users. When prices are going down, it can take some time for them to flow through to us.
CAN'T YOU BUY FROM A CHEAPER SUPPLIER?
Our contract with BP ensures us reliability of supply and fuel quality. When there was an acute shortage of drivers last year, some airfields couldn't get fuel for weeks, our delivery times slipped from 48 hours to just 72 hours. We regularly review the contract to ensure value in pricing and service, and are contracted through to the end of this year with no option to buy elsewhere. We also receive weekly spot pricing data from other suppliers, and the price we get from BP is competitive.