With the threat of $4 a gallon fuel prices casting its shadow on the racing season during the summer months, many in the racing industry are worried that rising costs will keep racers off the track, and engines and parts on the truck. A recent edition of
SEMA eNews detailed how escalating prices may have an effect on some racing plans this season. But is it time to panic yet? Experts think that the competitive spirit will overcome the fuel costs but may still keep racers closer to home.
From SEMA eNews
RACERS AND ENTHUSIASTS FEEL THE PINCH OF HIGHER RACE FUEL PRICES
As
prices escalate at the pump, so too does the price of race fuel,
causing crew chiefs and weekend enthusiasts to adjust their budgets
accordingly. The rise hasn’t been dramatic, but still noticeable.
“The
cost is increasing, maybe even more than pump gas,” says Steve
Scheidker, global marketing manager for VP Racing Fuels. VP makes a
number of race fuel blends, including spec fuels for American LeMans
and NHRA.
Scheidker adds that since VP buys refined product and
additives to produce its blends, the company is also subject to the
ebbs and flows of the chemical industry. “In some cases, those have
been in short supply: oxygenates, isopentanes, isooctanes – you name it.
When those material costs go up, our costs go up just like they do at
the pump.”
The rising cost of steel is another factor that
impacts VP’s bottom line, Scheidker adding that the bulk of his
company's product is shipped in steel drums and adds “another $.50,
$.60, $.75 a gallon. The cost of steel is a significant factor.”
The
average national price for a gallon of premium unleaded 91 octane rose
22% in the last year, and 6% in the last month, according to data from
the Automobile Association of America.
The price for 100- and
110-octane at Willow Springs Raceway in Rosamond, California, has risen
in step with pump prices nearly 20% – but in half the time, according to
WSR’s assistant manager Jim Hutchings. Hutchings says he was charging
$5.50 a gallon six months ago and recently raised it a dollar. That’s
still cheaper than some other stations nearby or in Los Angeles and
Orange County, he says.
And while the rise in high-octane
unleaded and leaded fuels is not significantly higher than that of
regular pump gas, the spike in methanol prices is another story. Typically used in high-performance classes such as Top Alcohol drag
racing, methanol prices have jumped as much as 50%, says David
Hedderick, general manager of Hyperfuels, based in Houston.
“I
know it’s popular with individuals making their own biodiesel, but most
of my customers run it in alcohol go-karts or run methanol-injection on
their turbos and turbodiesels,” Hedderick says. “It’s gone up quite a
bit on me, and my margin has been gradually dwindling over the last
six, eight months. Last June I was selling it for $2.10 (a gallon for a
55-gallon drum). Now it’s $2.90.”
The methanol spike is due in
large part to labor disputes and natural gas supply problems
experienced at the South American facilities of Methanex, the world’s
largest methanol producer, according to Bloomberg. Recent prices appear
to have leveled off, even dipping in parts of Asia, but Methanex’s
situation still looks dicey.
The government of Argentina, a
major supplier to Methanex, recently raised the import duty on natural
gas. CNNMoney.com quotes a senior Latin American Methanex official as
saying the company’s plants in Chile have only been operating at 30%
capacity since June 2007.
Ironically, a country often cited as
a catalyst for rising fuel prices due to increased energy demands is
selling race fuel to American distributors cheaper than what U.S.
refiners can offer.
“I sourced some nitromethane from
California off of a Chinese tanker,” Hedderick says. “I did some
testing on it and it is every bit as good as the stuff we make here. It
just costs significantly less. My price on nitro is lower than
everybody I know of.”
Even though the price of race fuel hasn’t
increased significantly parallel to pump gas, its rise has been noted
and chips away at established race team budgets.
“The trend
has definitely been upward, like everything – hotels, diesel,” says
Bernie Fedderly, co-crew chief for John Force Racing, explaining that
race fuel typically accounts for 5% of his team’s budget.
“I
don’t think it’s anything above the norm,” he adds. “And sponsorship
dollars don't necessarily keep up with other expenses! We just learn to
live with it.”
SEMA research analyst Megan McKernan, who races
in NHRA’s Super Comp class, isn’t so much worried about rising race
fuel prices as much as the costs of getting to the track. She recalls a
particularly painful moment recently filling up her diesel tow vehicle
at nearly $4.50 a gallon.
“My race season doesn’t really start
until May, so I’m a little bit worried about summer prices. I think
that’s where it’s going to hit most people, both the cost of diesel and
race fuel prices. I won’t be surprised if it affects a lot of people’s
decisions to travel for races.”
Hutchings, who sees enthusiasts at his track daily, doesn’t sense a great outcry – yet – among the weekend warrior leadfoots.
“If you’re a racer, fuel is just part of it, like tires.”