Let's say there are 2 possible Flying J fuel stops on a 970 mile trip.

New Milford, PA: $3.359/gal
Napanee, ON: $1.015/L = $3.846/gal

On this 970 mile trip, there were:
-200 miles in Ontario
-366 miles in NY
-404 miles in PA

ON fuel tax =.143/L = .542/gal
NY fuel tax= .396/gal
PA fuel tax =.409/gal

ON fuel cost = $3.846 - $.542 = $3.30/gal without tax
PA fuel cost = $3.359/gal - .409/gal = $2.95/gal without tax

Have I figured this correctly? Can I really save $.35/gallon by fueling in PA instead of ON?

 

Hey Rank, sorry just a quick digression, I just read in the paper tonight that two of three Canadians live within 62 miles of the U.S. Border. I found that interesting.

Sorry for the digression. Actually I am looking foward to the answers to your post as we all need to get this IFTA down.

 

Scenario 1: buy fuel in ON

194 gallons @ $3.846/gallon = $746 (including $105.15 in fuel tax paid at the pump).

Tax payable based on 5 mpg:
-200 miles in Ontario = $21.68
-366 miles in NY = $28.99
-404 miles in PA = $33.04
Total owing = $83.71

$105.15 - 21.68 - 28.99 - 33.04 = $21.44 refund
$746 - $21.44
= $724.56 actual fuel cost

Scenario #2 : buy fuel in PA

194 gallons @ $3.359/gallon = $652 (including $79.35 in fuel tax paid at the pump).

$79.35 - 21.68 - 28.99 - 33.04 = $4.36 still owing
$652 + $4.36
= $656.36 actual fuel cost

Anybody? Am I doing this right? This works out to about a $15,000/yr savings.

 

Hey Rank, that seems right to me. Don't you use a fuel routing program? Every route I take I put it in the program and it tells me the cheapest fuel. To be honest I never bothered to break it down like you just did, but after reading that I'm glad I am using this program.

Just to edit, I put in Boston, Ma to Montgomery, AL and the cheapest fuel was in Wytheville, VA at the Flying J and actually in Dublin, VA at a place called Stop In (Flying J is better as you are without a doubt going to get the 5% cash back, these other places code it as merchandise sometimes)

It was retail $3.09 and after IFTA $2.924.

The first fuel stop on the route was in Wrentham, MA where retail was $3.649 and after IFTA $3.439 and the last stop was in Clanton, AL where retail was $3.159 and after IFTA $2.969. By the way I looked at the T/A (here in Alabama 10 miles away from Flying J where it is $.20 cents cheaper)and it was $3.41. I'm sure companies get a discount but why any O/O would buy fuel here is beyond me.

I think your math really illustrates at least one reason why some will be doing better than others. I tried to tell my friend about this program I use but I think I have to show him the numbers cause I can assure you after he sees that he will pay the $25 or whatever it cost to use the fuel routing.

 

Yessir, Rank. You've got it right.

 

Yep, right answer. Subtract the tax from the pump price and you've got your true cost.

 

Yes Rank! You did good! 8)

 

Dont get caught up in the "cheapest" fuel game, watching what the taxes are for each state and playing the tax game will get you farther ahead than the cheap fuel game.

 

I don't know if you meant me when I used the word cheapest, but just to clarify I mean cheapest net IFTA not cheapest overall.

 

What's the name of that program merrick? If it's online do you have a link?
Thanks