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H-13
APPENDIX B
Sources of Data
Some data needed for the fuel comparisons can be found market price of conventional jet fuel to maximize profits.
easily. Other information, such as transportation costs (pipe- However, if the fuel producer and fuel buyer go into a long-
line, truck, barge, rail, etc.) and storage and blending fees term contract, then the fuel producer may sell its product at a
depend on the facility and businesses involved. Fuel informa- discount to conventional jet fuel. Because of this, AFIT has a
tion is provided below. The AFIT software provides the typi- default assumption that the price of the alternative fuel is
cal cost range for the various handling fees. assumed to be 90% of conventional jet fuel.
Fuel Transportation and Storage Costs
Gasoline and Diesel These costs are not collected and posted conveniently on
EIA gasoline and diesel prices: any single website. The cost ranges provided in AFIT were
http://tonto.eia.doe.gov/dnav/pet/pet_pri_gnd_dcus_nus_ collected by reviewing financial filings, regulatory require-
w.htm ments, and other legal and non-legal documents and sources.
U.S. Gulf Coast No. 2 Diesel Low Sulfur Spot Price FOB Pipeline, barge, truck, and rail costs vary widely depending on
(cents per gallon) a multitude of factors. The Energy Information Association
http://tonto.eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n= (EIA) is a large repository of useful information and can be
PET&s=rdlusg&f=d found at http://www.eia.doe.gov/.
IATA Jet Fuel Price Monitor
New Diesel Fueling Station Costs
http://www.iata.org/whatwedo/economics/fuel_monitor/
Construction costs vary depending on region, project type,
index.htm
preexisting arrangements, and so on, but the RSMeans Building
ATA Jet Fuel Price Statistics
http://www.airlines.org/Energy/FuelCost/Pages/MonthlyJet Construction Cost Data manual is an excellent source for the
FuelCostandConsumptionReport.aspx latest industry standards. The 2008 edition was used for this
version of the handbook. A 2010 version of the manual is
Alternative Fuel Price Estimates at the Producer now available.
Many reports (e.g., Hileman et al., 2009) provide estimates
of the economic costs of producing fuel, but these values are Equipment Costs
in terms of the fuel producer. This should not be confused GSE equipment replacement costs vary widely depend-
with the price that would be paid by a fuel consumer. The ing on the equipment on site, its age and condition, onsite
price paid by a consumer will be set by the prevailing market inventory, mechanical skill level of employees, and other
price for conventional jet fuel. Assuming that the fuel pro- factors. Fleet and equipment managers currently maintain-
ducer can create its alternative jet fuel at a cost that is less than ing the equipment will likely be able to find the best cost
the prevailing price of conventional jet fuel, it will sell it at the data with their current suppliers.
