The cost of aviation fuel is increasing dramatically. A city staff report to city council says the cost of AV gas is increasing by 55 per cent per litre and Jet A fuel is going up by 73 per cent per litre.
“The last time we awarded the fuel contract in 2009, the prices were significantly lower,” the city’s financial officer Pat Higgins says. While it is an incredible increase, Higgins adds, the fuel is resold at the WL Airport, so the money is recuperated. “It’s not our fuel and it’s to be used, especially in the summer by forestry,” she explained. Higgins reports that a temporary contract has been awarded to Executive Flight Centre for the tendered price of $741,168. The contract will run from April 1 to Dec. 31, 2012. There were two other bids — Petro Value Products at $747,965 and Enex Fuel Ltd. at $760,967.
Behind the temporary contract is the intent on the city’s part to put the fuel tender out at the same time as the city’s other tenders go out for bid.