Originally Posted by
hearna
Just to chime in on the whole fuel thing; Have you guys noticed that the oil companies have clued in to the whole "If we are loosing money on crude lets make up for it by maintain high prices on the refined stuff"
I am curious if the same is holding thru for jet fuel.
At today's crude prices the price of gas (in AB anyways) should be around 60c/L... last I checked it was still low 90s.
That's a spurious comparison because there are fixed costs in refining and gasoline retail such that an X% decline in the price of oil doesn't directly translate to an X% drop in gasoline prices at the pump.
Also remember that the drop in the Canadian dollar has reduced the size of the decrease in oil prices when measured in CAD.
As for jet fuel, it has
tracked WTI prices pretty closely over the past year. Although that's comparing an index jet fuel price and I imagine that the price the airlines pay at the airport is slightly stickier, just like retail gasoline.