What am I missing?

Discussion in 'Ask An Owner Operator' started by BerryTrucking, Jun 21, 2020.

  1. bryan21384

    bryan21384 Road Train Member

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    First off, I love Rutters lol.....second it's also worth mentioning that if one fuels in PA or IL, I'm thinking IL has high fuel tax too, its imperative that a driver maximizes how much mpg they get to. That will help in the refund. I'm a company driver, and we have assigned fuel stops. Judging by the fuel stops, I can tell they like to pay IFTA at the pump. My most frequent fuel stops are in IL or PA. Very rare done get fuel in MS, SC, OK or MO. Those states are towards the bottom of fuel tax costs. If I get one of those stops, that usually means I'm running the opposite direction of the high fuel tax spots. That fuel tax can be killer if a driver don't know how that works
     
  2. bad-luck

    bad-luck Road Train Member

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    I like Rutters too!! Good coffee! Illinois fuel tax is 61.08 Pennsylvania is 75.20 They do use your mpg. I dont have one handy to show you exactly how it works
     
    Last edited: Jun 22, 2020
  3. Bean Jr.

    Bean Jr. Road Train Member

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    See, the problem seems to be you're confusing pump price, including IFTA, and rack price, which is before IFTA tax is added in. For example TA Morris, IL is $2.399 per gallon. The IFTA for Illinois is $0.334 giving the net fuel price of $2.065 per gallon. Your example of $3.059 a gallon, less $0.747 is $2.312 per gallon, or $0.25 more per gallon than I pay buying in Illinois, so to pay $0.25 more per gallon for like 4,000 gallons just to get a refund doesn't make sense.
    And that was to compare apples to apples. To compare oranges to oranges, my price at the TA is $1.827 compared to your $2.599. I am still paying $0.358 less per gLlon, buying where the fuel tax is less. That's $1,432 a quarter. I assure you that is worth a lot more than the refund.
     
  4. bad-luck

    bad-luck Road Train Member

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    First you are talking about different states. Second you are talking about rack price , only the fuel stops pay rack price. Even if you are an OO and you are leased on to a mega, you are getting what's called cents pricing. Which is a few cents over cost, and this fluctuates with the market. This is why leased drivers don't know what the discount is until they receive their settlement, they have an idea but don't know what it actually is. But I can only assume you are running all your miles in Illinois.
     
    Last edited: Jun 22, 2020
  5. bad-luck

    bad-luck Road Train Member

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  6. bryan21384

    bryan21384 Road Train Member

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    I always buy the food, they get 20 bucks out of me easily...tacos, fried pickles, wings, awwww man!!!! Illinois went up a little didn't they?
     
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  7. bad-luck

    bad-luck Road Train Member

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    They all have my friend
     
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  8. Bean Jr.

    Bean Jr. Road Train Member

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    You don't get it. You pay taxes based on how many miles you run in each state, not the amount collected at the pump. When buying fuel, you try to pay the lowest amount after deducting that tax. You buy wherever it is lowest, regardless of the pump price. I really don't understand why this is hard for you to understand. If the price in Ohio without the tax Ohio collects is cheaper than Pennsylvania before the tax Pennsylvania collects, you save money by buying in Ohio. You will pay PA's IFTA no matter where you buy it. It isn't rocket science, it's economics 101.
     
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  9. bad-luck

    bad-luck Road Train Member

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    I do understand! And I even mentioned that in my previous post about paying taxes in the States you run in. I also know that I pay IFTA in the States I run in. been driving 32 years and been an owner operator for a long long time. I get quarterly IFTA statements, and have to keep track of my miles to renew my tags every year. And of course you want to buy fuel with the lowest price but you still didn't grasp what I was trying to say. Are you an owner operator or an independent having your own authority. Or are you a company driver?
     
    Last edited: Jun 23, 2020
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  10. Big Rig Max

    Big Rig Max Light Load Member

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    Just browsing thru this thread & read this post. I've often thought about buying my own truck & doing my own thing. However, I have a company job that I can make $80-85k & maybe 90k. Makes it really hard to beat company job.

    Would be helluva lot of fun to run my own rig but atm can't beat my company gig & none of the 'run your own business' headaches, paperwork, & responsibilities.

    Now if I could make $150k profit...
     
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