Hey, weird question for anyone. How much does it cost to transport a gallon of gasoline for the "last mile" from the terminal to a retail gas station? I found a study that estimated it was between 0.01 to 0.02 cents per gallon. However, when I was talking to a rep from a fuel hauling company, he indicated that I wasn't even close (too low). Couldn't get a ballpark estimate from him so I'm wondering if anyone here knows. If I calculate a 100 mile roundtrip carrying 9000 gallons, just considering fuel, driver wages and the purchase cost of the truck trailer, my estimate is in that range. Maybe we weren't on the same page when I said "cost to transport a gallon of gas", I know that there are some higher figures for distribution costs (http://energyalmanac.ca.gov/gasoline/margins/) but these seem to include more than just the transport from terminal to station (i.e. licensing fees, insurance, advertising, etc.). Can anyone provide additional insight?
How much does it cost to transport a gallon of fuel to a retail gas station?
Discussion in 'Tanker, Bulk and Dump Trucking Forum' started by trucking_noob, Aug 26, 2013.
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Depends. im guessing it was 1-2 cents PER POUND maybe? 6000 gallons would weigh about 45000 lbs. at 1-2 cents per gallon that would be 60 to $120.
45000 lbs at 1-2cents per pound would be $450 to $900 and a more likely ratetrucking_noob and mje Thank this. -
mje and trucking_noob Thank this.
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mje and trucking_noob Thank this.
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We used to have a 4,500 gal min on bunker, 6,500 gal min on #2 and $7,500 gal min on gas. This came from the old ratemaking bureau tarraffs and was based on the product density/ gal. as #2 was 7.1#/gal while gas was only 6.5#/gal.
trucking_noob Thanks this. -
Thanks everyone for the info. Yes, it's kinda hard to figure out what all of the charges are that are involve. I was thinking what is the worth of a lighter truck to fuel haulers. For example, if an 18-wheeler switched from steel wheels to aluminum, it saves about 450 lbs (about 75 gallons). So if you can carry an extra 75 gallons and charge the customer, you essentially can charge the rack price plus margin and the additional delivery charge ($0.045/gal) yet not have an increase in cost, since you're replacing deadweight with payload - so the extra margin on the rack price and delivery charge is pure profit!!!
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Correct, normally you're hauling full loads. Super singles definitely help increase payload. Increased payload means more $$$.
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Years ago the majors had all the weight shaved off, (1) small fuel tank, two batteries instead of 4, no landing gear on the wagon, just brackets to add temp legs when needed. optimal number of compartments, lightest hoses & more.
They had all that by the 70's! -
There's so much that go into the cost you'll never know the true amount. You have to consider pipe cost, terminal cost, transportation, and so on. I can tell you that at a major oil company like BP the transportation always operates at a loss. That's because they never figure sales into that department. They might now but for years it's always been at a loss. It's much different for a common carrier that buy at the rack. With them you might get into the ballpark with cost but they have cost also you don't see.
cc tanker Thanks this. -
I see. Yes, i'm finding that wuantifying just the transport cost is complex and somewhat cryptic. So other than the $0.045 per gallon provided by quality mike, can anyone else provide some ballpark figures as to the cost of transporting fuel (or incremental revenue in quality mike's case) so I could get a rough idea if $0.045 is typical? Much appreciated!
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