Fuel Management- Using A Supplier At The Base Airport

Started by Nihilian, December 23, 2015, 07:38:36 AM

Nihilian

Hi

Typically a fuel supplier has a discount that they give you from the market price + a monthly contract fee.

So for instance if I buy fuel worth 500 K USD and I use a supplier who gives me a 5% discount from market price, then assuming no change in fuel price I would get the same amount of fuel at 475 K USD. As long as the fuel suppliers monthly contract fee is below 25000 USD then I am in the money?

Is my understanding of this correct?
Thanks in advance for the help

schro

Supplier discount only applies at base airport. Therefore, you can ballpark it by dividing the presented percentage by two.