What's up with off road fuel prices??

[Dargo]

I've bought from the same company for about 15 years. I am not a big customer. I generally go through between 1000 to 2000 gallons a year. I'm well aware that some go through that in a week or less. Anyway, here's my issue; I called yesterday to buy about 700 gallons and was quoted $3.40 per gallon for dyed #2 off road diesel. WTF?!

I explained that the station right down the road from me was selling on road; taxed diesel for $3.10 a gallon. I'm rather confused as to how not paying roughly $0.40 cents (or so) in road tax and buying in somewhat of a bulk purchase warrants $0.30c more per gallon than taxed on road diesel at the pump. When I inquired about the conundrum, they pretty well said "Do you want us to deliver fuel or not?" Clearly, the answer was "not".

I filled my pickup, about 30 gallons, and the 100 gallon tank in the back at $3.10 a gallon. Came home and pumped the 100 gallons into my larger tank and went back and bought another 100 gallons for the fuel tank in the back of my truck. It was too late and I was too cold to make another trip.

I see that fuel jumped up about a quarter a gallon today, but still, I have to wonder about dyed #2 being more expensive than taxed, non-dyed #2. That just doesn't make sense to me. Anyone else notice anything like this?

 

[smstonypoint]

Just speculation on my part, based on casual observation.

I assume that sellers use a last-in, first-out (LIFO) pricing policy; i.e., they set their retail price based on the wholesale price of their latest inventory replenishment.

When wholesale fuel prices are increasing, high-volume sellers would increase their prices faster than low-volume sellers because they replenish their inventories more frequently.

Steve

 

[jonyyuma]

Gasoline just jumped .25 cents a gallon here in one week. Diesel yesterday was $3.15 a gal. and supposed to jump too. they announced that drilling in the gulf was too risky,. So now our suppliers are increasing prices? Just in time for the holidays, Jy.

 

[blueriver]

I've bought from the same company for about 15 years. I am not a big customer. I generally go through between 1000 to 2000 gallons a year. I'm well aware that some go through that in a week or less. Anyway, here's my issue; I called yesterday to buy about 700 gallons and was quoted $3.40 per gallon for dyed #2 off road diesel. WTF?!

I explained that the station right down the road from me was selling on road; taxed diesel for $3.10 a gallon. I'm rather confused as to how not paying roughly $0.40 cents (or so) in road tax and buying in somewhat of a bulk purchase warrants $0.30c more per gallon than taxed on road diesel at the pump. When I inquired about the conundrum, they pretty well said "Do you want us to deliver fuel or not?" Clearly, the answer was "not".

I filled my pickup, about 30 gallons, and the 100 gallon tank in the back at $3.10 a gallon. Came home and pumped the 100 gallons into my larger tank and went back and bought another 100 gallons for the fuel tank in the back of my truck. It was too late and I was too cold to make another trip.

I see that fuel jumped up about a quarter a gallon today, but still, I have to wonder about dyed #2 being more expensive than taxed, non-dyed #2. That just doesn't make sense to me. Anyone else notice anything like this?

They must have made a mistake in the quote ... I just called my supplier and today's price is $2.65 ....

 

[kenstrac]

I've bought from the same company for about 15 years. I am not a big customer. I generally go through between 1000 to 2000 gallons a year. I'm well aware that some go through that in a week or less. Anyway, here's my issue; I called yesterday to buy about 700 gallons and was quoted $3.40 per gallon for dyed #2 off road diesel. WTF?!

I explained that the station right down the road from me was selling on road; taxed diesel for $3.10 a gallon. I'm rather confused as to how not paying roughly $0.40 cents (or so) in road tax and buying in somewhat of a bulk purchase warrants $0.30c more per gallon than taxed on road diesel at the pump. When I inquired about the conundrum, they pretty well said "Do you want us to deliver fuel or not?" Clearly, the answer was "not".

I filled my pickup, about 30 gallons, and the 100 gallon tank in the back at $3.10 a gallon. Came home and pumped the 100 gallons into my larger tank and went back and bought another 100 gallons for the fuel tank in the back of my truck. It was too late and I was too cold to make another trip.

I see that fuel jumped up about a quarter a gallon today, but still, I have to wonder about dyed #2 being more expensive than taxed, non-dyed #2. That just doesn't make sense to me. Anyone else notice anything like this?

What are they selling HHO for in your area?

 

[greasemonkeyok]

How much would it cost to hire a truck driver to drive to another jobber and deliver 700 gallons to you? Probably less than $280.00 (700 x .30).

 

[Dargo]

They must have made a mistake in the quote ... I just called my supplier and today's price is $2.65 ....

I've been busy and haven't had much time, but I did call back to make sure that there wasn't any mistake because if I find they are trying to gouge me after all these years, I'll be a permanent "past" customer. They verified $3.40 per gallon for #2 off road diesel. Even after the price increase at local stations, they are still a quarter more a gallon than taxed on-road diesel! I'm finished with them. As I first mentioned, I'm aware I'm not a huge customer, but this load would have put me over 2000 gallons for 2010. I wouldn't think that would make me their smallest customer either. It's clear that they simply do not want business from people my size.

 

[clemsonfor]

I bought some #2 dyed deisel to put into my fuel oil tank at the farm for the Oil heat last friday. I purchased at Saluda Oil Co. In Saluda SC. The sell fuel oil and deliver it have a tractor truck service business and do tires all there. I paid $2.58. I wish i had more capacity than the 2 5 gallon cans as all the talk its going up make me wish i had bought more like 75 gallons.

By the way those of you that say that the dyed is the same as the pump and is ULSD. At least here in SC its not. The fuel oil receipt they gave me listed 10 gallons on #2 dyed Low Sulfer Deisel. This is the second fuel dealer who has told me off-road is LSD.

 

[Dargo]

By the way those of you that say that the dyed is the same as the pump and is ULSD. At least here in SC its not. The fuel oil receipt they gave me listed 10 gallons on #2 dyed Low Sulfer Deisel. This is the second fuel dealer who has told me off-road is LSD.

I'd say that must depend on the supplier. All 3 suppliers I've used all said they had to move to ULSD the first of this last year. I got one of the suppliers say that they'd bring me diesel for $3.06 a gallon if I took over 500 gallons. Screw that! I'm going back out to the place I got it a couple days ago and make a few trips. They are still at $3.10 ($3.09 9/10) a gallon for on road. Going with non-dyed fuel I have the option of just filling my truck or RV at home. These suppliers are either not wanting any orders less than a thousand gallons or so or they are just flat stabbing customers on the price. Oh well, time to make another trip to fill the 100 gallon tank in the back of my truck with the "on road" fuel. I know it's costing me 4 cents a gallon more and I have to make a few trips, but now it's the principle of the suppliers making a killing per gallon!

 

[clemsonfor]

I'd say that must depend on the supplier. All 3 suppliers I've used all said they had to move to ULSD the first of this last year. I got one of the suppliers say that they'd bring me diesel for $3.06 a gallon if I took over 500 gallons. Screw that! I'm going back out to the place I got it a couple days ago and make a few trips. They are still at $3.10 ($3.09 9/10) a gallon for on road. Going with non-dyed fuel I have the option of just filling my truck or RV at home. These suppliers are either not wanting any orders less than a thousand gallons or so or they are just flat stabbing customers on the price. Oh well, time to make another trip to fill the 100 gallon tank in the back of my truck with the "on road" fuel. I know it's costing me 4 cents a gallon more and I have to make a few trips, but now it's the principle of the suppliers making a killing per gallon!

You can file to get your taxes back on that 300-400 gallons that you are purchasing. Yes its more paperwork but would at least cover your fuel cost to drive to get it.

 

[niemeyjt]

Over this side of the pond we are having a cold snap that has increased demand and prices somewhat and fuel is a global market so this may be impacting on you in N.A.

When I ordered No 1 (kerosine) last week, the price was 54p / litre ($3.22 / US Gallon) - today it is 65p / litre ($3.88 / US Gallon), No 2 is about 10% more expensive. It also took 10 days to arrive. This fuel carries minimum tax.

Therefore I recon what you are seeing may just be a reflection of this, and as a result of european cold snap.

Anyway, things could be worse for you - today I paid 128p / litre for undyed no 2 (DERV) - that's $7.64 / US Gallon.

J

 

[Diamondpilot]

Dargo

Not sure how it is down there in Southern Indiana where you are at but up here in Northern Indiana we can get it with or without bio. Bio is more expensive so screw that. They do mixes up to 20%. Its basically $.05 per 2% of the mix.

We also pay sales tax on the quoted cost. So if its $3.00 per gallon we pay $3.21 after the 7% sales tax.

I am with you and I would just haul a load each time you go to town.

Chris

 

[HiTechTed]

Does anybody remember back in the day, when fuel prices would increase it would be like 2 or 3 cents per gallon, and the increases were few and far between. Now, it jumps .25-.30 a gallon overnight. I guess when it was 70 cents per gallon, a 2 cent jump was less noticeable than a 25 cent jump is now.

And why is diesel more expensive anyway? Before GW Bush, it wasn't. Now it is. Maybe I'm reading too much into it all, but it makes me suspicious. It's nothing but greed and of course, the middle class gets to take the beating for everybody else...

 

[Dargo]

Yeah, back when I bought my 550 gallon diesel tank and transfer pump (just had to get the cool meter with it too so I could see how much I was pumping out and would know about when I was empty) I was paying $0.76 cents a gallon for #2 off road. Maybe my memory is bad, but it seemed like it saved me at least 50 cents a gallon, if not more, compared with filling 5 gallon cans at the gas station with on road diesel.

I guess that's my problem; I can't figure out how it's the same price for non-taxed, dyed off road use only diesel as it is for diesel at the pump that has a road tax already added to the price. It just doesn't add up in my mind. As I mentioned earlier, if all things are equal, I'd just as soon have the option to use the fuel in vehicles I run on the road.

 

[clemsonfor]

Does anybody remember back in the day, when fuel prices would increase it would be like 2 or 3 cents per gallon, and the increases were few and far between. Now, it jumps .25-.30 a gallon overnight. I guess when it was 70 cents per gallon, a 2 cent jump was less noticeable than a 25 cent jump is now.

And why is diesel more expensive anyway? Before GW Bush, it wasn't. Now it is. Maybe I'm reading too much into it all, but it makes me suspicious. It's nothing but greed and of course, the middle class gets to take the beating for everybody else...

Look into when the EPA mandated LSD and anw with ULSD its makes it even more.

A quote from Wikipedia. "The transition to ULSD is not without substantial costs. The US Government has estimated that pump prices for diesel fuel will increase between $.05 and $.25 per gallon as a result of the transition. And, according to the American Petroleum Institute, the domestic refining industry has invested over $8 Billion to comply with the new regulations."

Found here. Ultra-low sulfur diesel - Wikipedia, the free encyclopedia

 

[downslope]

You can file to get your taxes back on that 300-400 gallons that you are purchasing. Yes its more paperwork but would at least cover your fuel cost to drive to get it.

Yes, you can get the federal tax back when you file your income tax.
Depending on your state you may also file to get back the state road fuel tax and the sales taxes, if any. Save your receipts.

You can always save money by buying at the station and hauling it home, it just depends if you want to go thru the trouble; for me it is worth the extra work. Probably the only way you can save on delivered oil is to get a whole truckload which would be too much for your or my needs.

 

[devildog1]

Diesel here in upstate N.Y. is @ 3.39 per gal @ Route 67 Truck Stop this A.M. Gas @ Mobil Mart on same road is 3.29 per gal for low grade. Ripping us off once again.And fuel oil is running around 3.26 per gal, this is in a small town really in the boonies,( Town of Amsterdam)
DevilDog

 

[kenstrac]

Paid $2.77 for HHO yesterday avg road diesel is $3.15 Gas $2.95

 

[shade tree welder]

You can file to get your taxes back on that 300-400 gallons that you are purchasing. Yes its more paperwork but would at least cover your fuel cost to drive to get it.

My delivered fuel price is always a few cents over the pump, but I pay road
taxes on my fuel (undyed) I typically get 2 loads a year, 600 gallons. When I
call I get "put on the route" so next time they are up in my area they top me
off usually in 2-3 days never longer than a week. If I need same day service
they charge a flat fee of $25. I can always wait a few days or pick up 5 or
ten gallons at the station to get me by.

When I switched to Meier Oil I noticed my mileage increased about 10% in my
truck, on the road, that easily made it worth the few cents over the pump
cost.

Couple of days ago it was $3.19 here in central IL.

 

[Dargo]

Well heck, if it's gonna cost the same for off road, dyed, diesel as taxed on road, I'll just fill my tanks with on road from now on so I can have the option of filling my pickup and RV at home.

Someone mentioned getting the road tax back when doing taxes, but I have no clue as to how to do that even if I ran 100% of the fuel in off road vehicles. I'd assume that I would have to keep log books of every hour run on all of my off road equipment, and that would be about impossible. I think I have around 13 or 14 diesel powered machines. There's not enough time in my day to try to log hours on each one in some book if that's what I'd have to do. Heck, I generally get audited about every 3 years or so and the IRS owes me a few hundred bucks each time. I appreciate the money back but, again, the time part isn't worth it.

I think I have a jealous BIL who turns in an "anonymous tip" to the IRS to get me audited. You'd think after a while they'd get smart and realize that I'm not cheating and check out the person giving them the bad tips. Oh well, clearly it doesn't operate that way. I know he cheats like **** on taxes but my wife would have a cow if I turned him in and he lost everything. Being that he isn't so bright, I have to assume it's just a matter of time. It will be a bummer if there is a limit on how far they can go back when they find he's been cheating though. He's cheated for so long now, I'm sure he would still come out ahead after having to pay back taxes and penalties if they can only go back a few years. But, I'm off the subject and I suppose it's not my business. I just need to make sure I get all the dyed diesel out of my 550 gallon tank before I start putting road diesel in it. I'd hate to get busted for doing the right thing but have a gallon or so in the bottom of my tank make all my diesel turn red.