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Old 01-06-2014, 04:42 PM
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While it may seem like this scheme would be a cost savings, your costs will not outweigh the benefits.
You say you will have 5 trucks. Each truck will only use 80-100 gals a day, max. That will be roughly 175,000 gals a year at max. or 15,000 a month.
You say you are in California. You will have to get local, state and EPA permits to build the tank. There are guidelines as to how the tank is constructed and the containment revetment around the tank and the vapor recovery system. You will have to set up an account at a local wholesaler for fuel delivery. You will have to get set up with the state for fuel use permits. If you cross state lines you will have to get set up with IFTA to pay apportioned fuel tax for each state you drive in. You cannot buy from the wholesaler until you get the correct permits. YOU CANNOT BUY from the refinery rack. YOU WILL have to pay the road tax on the fuel you buy, even at wholesale price. The state will audit you to ensure they get the tax due on the number of gallons bought at wholesale. Your only savings will be the truck stop markup.
You would be money ahead to just get set up with a national fuel card system like Fleet One and get a discount off the pump price. Now if you have a hundred or more trucks, then the route to go is to have an onsite fueling station.
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  #12  
Old 01-09-2014, 10:58 PM
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Quote:
Originally Posted by Passingtrucker View Post

I'm quite sure its a trade secret. Otherwise, too many O/Os would pool their $$ together to buy a tanker, then buy diesel wholesale, and that would put small independent stations and truck stops out of business because too many )O/Os have a source to procure diesel at the same cost as truck stops.
Wrong,
I deliver thousands of gallons every day to legitimate trucking companies who procure their own fuel at wholesale cost, including the company I work for we have our own fuel tank on our yard.
The difference, simply put is that all these companies follow the law and do not try to circumvent the rules. (What a concept) Small mom and pops or truck stops will not go out of business...
The profit ratio of fuel is not as great as you may think..

Timberwolf
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  #13  
Old 01-13-2014, 04:10 AM
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Originally Posted by TimberWolf View Post
Wrong,
I deliver thousands of gallons every day to legitimate trucking companies who procure their own fuel at wholesale cost, including the company I work for we have our own fuel tank on our yard.
The difference, simply put is that all these companies follow the law and do not try to circumvent the rules. (What a concept) Small mom and pops or truck stops will not go out of business...
The profit ratio of fuel is not as great as you may think..

Timberwolf
I would think that one of the biggest savings that accompany having a fuel tank at a terminal would be the convenience of fueling there, versus on the road. It would take less time, too, I'd imagine, given the lines at some places.
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