Off Road Diesel?

[Peter 315]

It comes down but SLOW if the gas station just filled the tanks, They wont drop the price fast and lose money

 

[finn1]

Probably a better payback getting a job flipping burgers at McDonald’s if you consider the storage equipment, pump cost, loss of storage room in your shop, and time spent. To say nothing about the mess and chance of the stored fuel going bad.

Besides, it’s tough to time the market so you get the bottom price.

 

[crazyal]

I use a 55 gallon drum. The Fillrite pump will screw right into it and they aren't too heavy to move around. I have a dolly made out of wood with casters that allows me to roll it around the garage.

 

[Diggin It]

Umm, cool, but are you planning on taking advantage of potentially much lower prices to stock up for the future?

 

[4570Man]

Umm, cool, but are you planning on taking advantage of potentially much lower prices to stock up for the future?

Diesel hasn’t changed a lot here. I plan on filing up all my gas vehicles though.

 

[countrybumpkin]

Umm, cool, but are you planning on taking advantage of potentially much lower prices to stock up for the future?

If that’s why your trying to store some fuel so you can play a little bit on your tractor, you’re going to have a lot more to worry about if it were to get to that point.

 

[sodamo]

My setup

 

[BrokenTrack]

Let's do some calculations.

First, we have to estimate the bottom price? Let's be stupid optimistic and say $2 p/gallon savings.

Second, how much fuel do we want to hoard? Let's be stupid and say 500 gallons. So we are assuming we are going to save $1000. It might take us two years to recoup the investment? That's assuming 250 gallons per year??

Third, how much will it cost us to purchase the necessary equipment to do this venture? Probably going to pay $500 for a storage tank. Another $100 to rig it up with a hand pump? So we invested $600.

Fourth, our potential profit is $400. It will take us 24 months to realize this profit. So for the next 24 months we will potentially save $17 p/month.

Fifth, would we borrow the money to do this venture? Probably not because the payback is so low. So why would we do it?

They call that: Paralysis by Analysis; a person talking themselves right out of doing something. Then they break it down into tiny numbers to make it seem like it is insignificant savings. It gets kind of silly because if a person saw a $20 bill on the ground, who would not pick it up? Yet, they will deduce reasons why saving $17 a month is not worth it? Really? if you found (20) $20 bills on the ground you would not pick any of them up?

My local school board does this: takes 1.5 million in potential savings, divides that number by the number of tax payers and says, saving them $15 per year does not mean anything. Really, what part of saving 1.5 million did they miss?

Your deductions are amiss because it need not be that complicated because a person can figure out how to lower their initial costs. A person does not need an expensive new tank for instance. Here in Maine you can get used 275 gallon oil tanks for almost nothing since so many people are going to mini-splits. Just tee the two tanks together and you have 550 gallons of diesel fuel in storage.

I am all set up because I have been getting that Genset set up, so I will do this.

I can see no reason why storing something a person will eventually use is a bad idea. It would be like heating with firewood and telling someone to go out and cut dead trees as they needed them instead of having a year or two of firewood in storage.

 

[finn1]

Sounds a lot like hoarding toilet paper to me. The price might go up so I should fill my closet with the stuff.

Where does it end?

On the other hand, maybe I should have filled the closet with TP.

 

[Diggin It]

If fuel that has been in the $2.50/g range drops to $1.50 or less, why would you not buy as much as you can safely store knowing it will go to back to $2.50 or higher?