Jet Fuel (Kerosene) closed at $3.135/gallon today[1]. And that doesn't include the cost of transporting it from the Gulf Coast to where your Navy needs it.
That quoted price was the spot price. It doesn't include Federal or other taxes.
Let's suppose that it did include taxes. Federal tax for jet fuel for non-commercial-aviation use is 21.9¢/gal so even if the quoted price of $3.135/gal included federal tax, the without-tax price would still be $2.916/gal, which is a lot closer to $3/gal than $2/gal.
(Gas for commercial aviation use is also subject to the federal transportation tax and harder for me to figure out.)
Comments
That's a great deal.
Jet Fuel (Kerosene) closed at $3.135/gallon today[1]. And that doesn't include the cost of transporting it from the Gulf Coast to where your Navy needs it.
[1] Sep 28, 2012: http://www.eia.gov/dnav/pet/pet_pri_spt_s1_d.htm
To be fair you have to subtract off Federal taxes which the government doesn't pay for the fuel it buys which brings it down closer to $2/gal.
That quoted price was the spot price. It doesn't include Federal or other taxes.
Let's suppose that it did include taxes. Federal tax for jet fuel for non-commercial-aviation use is 21.9¢/gal so even if the quoted price of $3.135/gal included federal tax, the without-tax price would still be $2.916/gal, which is a lot closer to $3/gal than $2/gal.
(Gas for commercial aviation use is also subject to the federal transportation tax and harder for me to figure out.)