How’s your fuel prices

My friend is the fuel purveyor in our little SE Alaska town. His price locked in when the fuel barge (our fuel comes that way and that way only) leaves Seattle. He's a sharp guy. Right now he has a barge inbound, it will cost him an additional $1.40 per gallon over the last one that delivered 6 weeks ago. Remember not only does the oil go up, the fuel to operate the boat goes up, so it gets wild fast. He has 14 days to pay the invoice. Generally the prices at the pump are adjusted after delivery, but in this case he will have to increase beforehand on old stock to try to make up for some of the difference. You'd think that laws of averages would catch up, but when stuff goes back down, it goes down a few cents over time. It's a crazy business and they have to sit on a pile of cash for these times. Even in a small place like this the margins are razor thin. His insurance, payroll, maintenance, and environmental measures costs are staggering.

So yeah, our diesel is $6.39, we roll through 1K gallons a month when we're busy. I don't think the gas is as bad, I don't use as much of that.


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