Fuel for Thought
Smart Fuel
Fuel prices are declining for the moment, but it is not a signal to stop shopping for the best price. Always, I mean always, compare pre-taxed gallons when shopping across state lines. You want to find the lowest cost per gallon without the IFTA tax included. This will give you the real cost per gallon.
Most drivers, especially leased owner-operators, have a discount fuel program through their carrier. These discounts can be substantial, but they are still not always the best cost per gallon. Even discounts at the big chain travel centers, with their inflated marquee prices, can be higher than smaller fuel stops. It really pays to shop fuel prices on your route.
The fuel cost is not always the only consideration when factoring in associated costs. Example: You can fuel at a Pilot for 10 cents less than the TA or Petro nearby, but you plan to stop and shower at a Petro at the end of your day. If you buy 60 gallons at the TA for 10 cents more per gallon, you spent $6 extra for the fuel, but you also received a shower credit worth $18 to use later when you need it. That extra $6 you spend now just put you $12 ahead later by not having to pay for the $18 shower.
Parking is similar. If you pay a little extra to fuel where you park, but by doing so you save on the parking lot fee, as long as the extra fuel cost doesn’t exceed the parking lot fee, you are coming out ahead.
Fuel is one of your largest expenses as an owner-operator. Every dollar saved is a dollar in your bank account. Having a strategic game plan for fuel purchases can open new ways to save not just on fuel, but fuel-related perks like showers and parking.
As for the loyalty programs offered by the major travel center chains, they have a place for owner-operators, but the loyalty points are no substitute for actual dollars. Remember, loyalty points can only be spent at that particular chain, but dollars have real value everywhere. Those loyalty points are good for one thing though: use them for food or drinks. Enjoy your Per Diem deduction and use those pesky loyalty points for those things you cannot deduct.
DEF is another rising cost for owner-operators. Not long ago, you could get bulk DEF at the pump for under $3 per gallon. Today, it is not uncommon to pay $5 per gallon for bulk DEF at the pump. There are ways to save on DEF though. You can find a good price on boxed DEF at some stores, not travel centers, and then you just have to carry enough with you for filling your tank, or you can find lower prices at smaller fuel stop chains and mom-and-pop places. Currently, through my carrier’s discount program, I can get 50 cents off per gallon of DEF at one particular travel center, but their price is $5 or more per gallon. I can get bulk DEF from another, smaller brand-name chain for $4 per gallon without a discount at all. Of course, the best way to save on DEF is to increase your fuel mileage to lessen the DEF consumption, but that is not always an option, so save where you can. It might mean an additional stop just for the DEF purchase, but just like any stops on your route, planning is the key to efficiency, and efficiency equates to savings.
Price is what you pay. Value is what you get.
- Warren Buffett
See you down the road,
Greg