3rd Decimal on Fuel Quantity Missing on Fuel Reports?

Discussion in 'Ask An Owner Operator' started by PE_T, Apr 18, 2019.

  1. Oxbow

    Oxbow Road Train Member

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    You may already know this, but just in case you don't, this may save you some money.

    Hypothetical situation:

    Suppose I drive 10,000 miles in one quarter, 5,000 miles in Idaho, and 5,000 miles in Wyoming, and suppose that I have enough fuel capacity to buy all the fuel in one state or the other.

    Scenario #1: Fuel in Wyoming is $2.95 per gallon, and fuel in Idaho is $3.00 per gallon.
    I got 5 miles per gallon, and therefore burned 1,000 gallons in each state, or 2,000 gallons total. Now let's say that I bought all of my fuel in Wyoming, because it is cheaper. So, I spent $2.95 per gallon and purchased 2,000 gallons, for a total of $5,900 dollars. Then, when I file IFTA, Idaho charges me for the tax on 1,000 gallons at $0.32 per gallon, or $320. Now we will add that to the price paid at the pump of $5,900, for a total of $6,220. Wyoming however gives me a credit because I bought more than I burned there. Wyoming's tax rate is $0.24 per gallon, I bought 2,000 gallons, but only burned 1,000 gallons, so I get a refund of $240. Now we subtract that from the total of $6,200, for a total fuel cost for the quarter, including state tax, of $5,960.

    Scenario # 2: Exactly the same as #1, except I buy all my fuel in Idaho instead of Wyoming. So I bought 2,000 gallons @ $3.00 per gallon, for a total pump price of $6,000. Wyoming charges me for 1,000 gallons of state tax @$0.24 per gallon, or $240. Add that to what I already have paid at the pump, for a total of $6,240. Now Idaho gives me a refund on the extra fuel that I bought there @$0.32 per gallon on 1,000 gallons, or $320. Subtract that from $6,240, and the total that I spent on fuel for the quarter, including state tax, is $5,920.

    So, I saved $40 dollars in total fuel cost by purchasing the more expensive fuel at the pump.
    Again, you may already know all of this, but the lesson is to always subtract the state tax from the pump price when comparing fuel prices. In my scenario the net cost of fuel in Idaho was $2.68, and in Wyoming was $2.71.
     
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  3. Long FLD

    Long FLD Road Train Member

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    You are really overthinking this. When the weights and measures department from each state tests pumps they usually only run a few gallons at a time to make sure they are calibrated properly. If the pump is calibrated it will be calibrated no matter how fast or how slow you’re pumping it. Personally I pay attention to the stickers on the pump and if it’s been a year or so since they’ve been calibrated I make a mental note of it and I’ll likely avoid it for a while. I believe they’re supposed to calibrated yearly.
     
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  4. Long FLD

    Long FLD Road Train Member

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    I go inside for a big ticket too, I was confused as to why that was used as an excuse to not stop on an even gallon.
     
  5. PE_T

    PE_T Road Train Member

    I would add that you want to specifically remove the IFTA state tax. The states of IN, KY, and VA have an additional fuel tax (known as a fuel surcharge) that is non-IFTA. That tax you leave on the fuel price when comparing fuel prices. NASTC’s app provides both fuel prices (with IFTA tax and without) to make it easier to compare “actual” fuel prices.
     
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  6. Oxbow

    Oxbow Road Train Member

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    It is good that you know this, maybe it will help someone else down the line!
     
    PE_T Thanks this.
  7. PE_T

    PE_T Road Train Member

    I hate going inside for a ticket. Lately I haven’t needed to since I switched over to fueling only at TA/Petros. I do take a picture of the fuel quantity displayed on the pump.
     
  8. PE_T

    PE_T Road Train Member

    One of these days I am going to buy a 5 gallon bottle and put some of these pumps to the test. Hahaha. It’s always been on my to do list, but I have a feeling I won’t find anything serious. Maybe I can find the pumps that are uncalibrated, but to our advantage! :biggrin_255:
     
  9. 062

    062 Road Train Member

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    With the trucksmart app you will have the last 3-5 fuel receipts on your phone.
     
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  10. PE_T

    PE_T Road Train Member

    It gets even better. Logging into their website has more, if not all.
     
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  11. 062

    062 Road Train Member

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    I get a email the day after any purchase. I just look at it to make sure it’s right. The one they send at the end of the week gets printed out.
     
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