Set fuel price vs FSC

[LDB]

A couple of T/T companies advertise for O/Os with a guarantee of diesel at a set rate. Provided you fuel at specified locations and run the provided routing fuel costs become a fixed amount.

Would it be better if your company implemented such a system instead of paying FSC? What should the base price of fuel be? How many mpg should the fleet avg be presumed to be? Should the reduced price fuel be available for paid miles or paid plus d/h miles or all miles regardless? What differential would there be for various size units? Should there be a similar program for gasoline units?

Presumably the pump price would be paid at the time of fueling and then a formula would be applied to determine the fleet price. The difference would then have to be returned to the truck operator. The only exception might be if company terminals had pumps that dispensed at the fleet price.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

 

[davekc]

For companies that rely on owner operators, it would be a tough sell because most owner operators don't have large cash reserves to put up front. However, there are some that invest in a fleet program.
The example of BarrNunn is a good example.

It is the same thing with the large carriers.
This is why you hear little whining about fuel prices from JB, Schnieder and the like.

They are doing two things.
The first is buying bulk at fleet prices, and second, they are currently running on bulk fuel purchased months ago. That of course is much cheaper.
When that dries up, then you will start to hear them complaining.

High fuel prices haven't hit all of the transportation industry yet.

Davekc