It's not really for that reason, but rather the company attaches the fuel you buy to your current trip. So if you only have a 600 mile run but buy 220 gallons of fuel, you aren't making any money on that trip because you put your revenue in the tanks...and it could be the difference between a decent paycheck and a negative one. Now, you will have fuel left over for the next run, but eventually it will bite you in the ### and put you in the red. You just have to be smart and use a little common sense. I'll buy extra fuel if I'm going into a state with high prices, but only enough to get in and out.
So how do you plan fuel stops?
Discussion in 'Ask An Owner Operator' started by gravdigr, May 3, 2012.
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Hope this helps. Tons of info here. -
Last edited: May 4, 2012
Mommas_money_maker and JDP Thank this. -
HDFatboy, JDP, Mommas_money_maker and 3 others Thank this.
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that was so helpful fortycalglock
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Why would I even care if I'm in the red for a trip? Although, I never am in the red for a trip, I am often in the red after sitting at home, playing for a month. But then I finally decide to go back to work and am quickly back in the black.
Fuel in the tank is an investment, better then any bank or market. Four bucks of fuel, in the tank will get me down the road better than six miles. At two bucks, minimum, per mile to the truck, that's twelve dollars returned for a profit of eight bucks. Wish I could get my banker and broker (no, not truck broker) to pay me that kind of money. -
gravdigr,
The first thing about fueling strategy is whether or not the company you're leased to requires you to pay shortages in fuel tax. The first company I was leased to that I ran northeast regional for did not. Therefore all the o/o fueled in NJ as it was the cheapest at the pump.
If they do make you pay the difference AND refund overages, then your strategy will be entirely based on the price of fuel before tax, and there are only a few exceptions to this. Examples: FL fuel is more expensive than GA fuel at the pump, but actually cheaper as FL's fuel tax is much higher than GA's. Most o/o will tell you NOT to fuel in Oregon as there is no fuel tax at the pump. Any miles you run outside of OR on that OR fuel, you'll be paying the full amount of fuel tax on. However, with cost plus pricing, usually the TA in Troutdale blows away the FUEL(pretax) price in ID, UT, and WY. I fill up, as you'll pay the fuel tax no matter what, whether at the pump or at the end of the quarter. In the beginning, you'll be doing a lot of subtraction, trying to figure out the lowest pricing, but you'll get the hang of it.
Now the exceptions are if you're loading to gross, you want some fuel in there so you're not playing the 25 gallon at a time game. It's worth paying more to not stop every two hours. Also, if fuel prices are rapidly falling, only getting what you need daily will save you some money. If they are rapidly rising, topping off daily is the way to go, just make sure the fuel tax for the state doesn't outweigh the rising prices. I've seen fuel jump .30 in a weekend.JDP and Mommas_money_maker Thank this. -
I agree with 40cal and autocar, there is no reason to worry about the trip you are on.... I am not even on a trip but filled my tanks. I fill up whenever I see the cheapest fuel. I also have a good $4,000 on my fuel card just in case i need it (L/P guys don't understand these terms as they don't have money available)
As for the cost+ at sapp bros I have noticed that, but have no way to check the prices. I honestly tend to fuel at Love's since we get the 8 cent discount. Most Love's I have fueled at have been at or less than the cost plus program. But in the end, I will fuel at the place I can get in and out of easier as well. I will pay and extra $1.20 in fuel cost if I can pull in, fuel up, and hit the road without waiting for 5 guys to fuel, get dinner and take a dumpMommas_money_maker Thanks this. -
I've seen two lease/purchases that did not heavily favor the company vs driver. In both cases, the companies were getting rid of older equipment in a market that didn't want it, and rather giving the equipment away at auction, they used it as a recruiting tool or helped out the drivers they already had.Mommas_money_maker and TheRoadWarrior Thank this. -
It's cost minus the 2 cents, not cost plus the 2 cents. Usually cheaper then TA/Petro or Love's. Sometimes Love's is higher, sometimes they are lower. Depends on which way prices are headed.SHC Thanks this.
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