Optimizing Fuel Purchasing
Check out the Webinar on YouTube:
- International Fuel Tax Agreement
- You pay fuel excise tax ($/Gal) every time you purchase fuel
- Fuel excise tax used to maintain roads
- Qtr IFTA - Pay fuel tax in the state that you purchased fuel, however, states want to be compensated for the number of miles the truck travels in each state. Purchase fuel in TX (paying fuel tax) however the Truck drove through OK and NE. OK and NE charges tax for the number of miles driven in each state. The percentage of miles driven in each state is used as the base calculation for the proposed fuel tax.
- FedEx assumes 6.4 MPG. Fuel Supplement paid per mile = $0.3533
- FedEx does this calculation. Owners do themself. HaldiTech can be also do via Truckspy API
- Qtr IFTA results in contractors either owing tax or getting a refund
- Buying fuel in higher-tax states is better than purchasing in lower-tax states
- Wholesale plus based on the Oil Price Information Service - OPIS, rack price -
- Fuel racks are where fuel storage depots / distribution locations where fuel trucks come to get fuel for stations.
- OPIS Average Daily Index Price” means the Average Price at the Applicable Rack as published by OPIS at approximately 6:00 AM Eastern time - used for daily price in Fuel Optimizer.
- Best discounts - T/A, Best, Speedway, AmBest, and Casey's.
- Minimal discounts - Loves, Pilot, Flying J
- WEX - Fuel transactions are automatically synced to FedEx and Truckspy
- Fuel Analyzer - Truckspy site.
- A mobile app offering turn-by-turn directions - Scheduled Feature
- Oddities - Stations take fuel wholesale, but have not repriced to retail due to other stations in the area not repricing. Some stations will hold off on repricing due to make the difference in the convenience store
- This causes issues as contractors will get a higher discount if the station is still at wholesale, but will receive a lesser discount when the station reprices for retail.
- Driver rewards are still valid using the Truckspy card
- FedEx assumes you are achieving 6.41 MBG (middle column)
- A truck is traveling 4,500 miles per week
- Fuel Supplement is what FedEx pays per mile travel - not per gal
- Purchasing older Trucks may actually cost you more as the MPG is less. Plus you’re having to pay additional costs due to Maintenance. Newer Trucks have maintenance covered as part of a new warranty
- An older Truck is costing an estimated $20,964 per year than if you purchased a new Truck…which can actually save you $18,405 per year in fuel costs