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Peru airport manager recommends raising avgas to $5.65; board agrees by consensus
Summary
Airport manager Kelly presented fuel‑pricing scenarios and, after comparing neighboring airports and accounting for current inventory and costs, the board agreed by consensus to set retail avgas at $5.65 per gallon; staff will monitor prices and manage ordering.
Kelly, the airport manager, presented detailed fuel pricing scenarios and recommended raising retail avgas to $5.65 per gallon to cover current costs and avoid carrying excess inventory into winter.
"If we were to blend the fuel we had in the tank already with the new fuel... and price it accordingly with a profit... we'd have to sell it at $6.15," Kelly said. She then presented a no‑profit scenario at $5.65 that would still cover costs and make the airport more competitive with nearby fields. Kelly showed a credit balance for the fuel account (about $44,694 after accounting for pending items) and walked members through how different retail prices compared with surrounding airports.
Board members discussed the tradeoffs of selling at a small margin versus selling at cost to remain price‑competitive. Several members expressed concern about being left with thousands of gallons if prices drop and favored the cautious approach of setting a price that covers cost. After discussion, members agreed by consensus to move the posted price to $5.65 per gallon; no recorded roll‑call motion was documented in the transcript.
Kelly said she plans to continue buying in smaller split loads (for example another 1,200‑gallon split) to avoid being overexposed to price swings and will advise the board if market conditions change. The board asked staff to monitor competitor pricing and inventory closely and to report back if a formal motion or change in purchase strategy is needed.
Next steps: staff will update the posted avgas price to $5.65, continue to manage split deliveries to control exposure, and report market changes to the board.
