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.

  1. trucking_noob

    trucking_noob Bobtail Member

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    Apr 6, 2012
    Vancouver, BC
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    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?
     
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  3. mikec265

    mikec265 Medium Load Member

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    Oct 25, 2009
    Dumbed Down Land, WTF
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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 rate
     
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  4. QualityMike

    QualityMike Light Load Member

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    Jun 19, 2011
    North Dakota
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    Our pricing for 100 miles was rack price (which included a margin) + .045/gal for 8500 to 11000 gallons of gasoline. Diesel, Kero or Lube oil were more. So about $ 750.00 to $ 1,000.00. Keep in mind this is a $ 250,000.00 truck and trailer hauling $ 35,000.00 to $ 45,000.00 worth of product.
     
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  5. FordFan

    FordFan Light Load Member

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    Jul 18, 2013
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    This is comparable. I quote fuel transport (w/o price of fuel). We are just a carrier. There is a minimum gall charge. Then the customer is billed per gall of product. Granted, due to the min gall charge if a customer only wants 4,000 gall, they will be charged for a full load. Also other charges are added, extra stop, terminals, pumps, etc.
     
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  6. wis bang

    wis bang Road Train Member

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    Levittown, PA
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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.
     
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  7. trucking_noob

    trucking_noob Bobtail Member

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    Apr 6, 2012
    Vancouver, BC
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    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!!!
     
  8. FordFan

    FordFan Light Load Member

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    Jul 18, 2013
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    Correct, normally you're hauling full loads. Super singles definitely help increase payload. Increased payload means more $$$.
     
  9. wis bang

    wis bang Road Train Member

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    The Major refiners already did all that. Eventually they found the ultimate cost control, sell the trucks and hire comon carriers!

    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!
     
  10. GasHauler

    GasHauler Master FMCSA Interpreter

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    Vegas/Jersey
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    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.
     
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  11. trucking_noob

    trucking_noob Bobtail Member

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    Apr 6, 2012
    Vancouver, BC
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    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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