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.