Anyone here deal with bulk fuel purchasing? (tanker loads)

[DSG2003Mach1]

I know there's some guys here on the oil field side of things but I'm looking for any kind of information/resources to improve our bulk fuel purchasing (on-road diesel), ~7k gal/week volume. Be it Index based contracts, fixed forward contracts, buying direct from the rack etc...

Anyone have any experience in this arena?

 

[jrandy]

I mean, my big block get's shitty gas milage and all, but I don't think I could go through that much fuel

 

[apex svt]

Depending on fuel consumption amounts, large truck stops like pilot will do fleet contracts for a at cost plus or at cost minus rates.
These “at cost” rates are based upon opis average rack prices, which large companies get for cheaper because of the massive volume. Buying directly from the rack will be tough, this is why most smaller gas stations are usually “branded” meaning they buy from shell from example at a cheaper rate than they could get from the rack but must advertise for them and pay their premium.

 

[DSG2003Mach1]

I forgot to include that we have 32,000 gallons of storage capacity on site, we don’t fuel at stations

 

[03cobra#694]

I forgot to include that we have 32,000 gallons of storage capacity on site, we don’t fuel at stations

In ground or above Jerry?

 

[gasyone]

How do you get fuel now? From who?


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[gasyone]

I sent you a PM on this


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[DSG2003Mach1]

In ground or above Jerry?

Above

How do you get fuel now? From who?


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We get it through companies like Mansfield oil, greens energy, jet age etc... we get daily quotes from like 5 companies

 

[limepro]

Depending on fuel consumption amounts, large truck stops like pilot will do fleet contracts for a at cost plus or at cost minus rates.
These “at cost” rates are based upon opis average rack prices, which large companies get for cheaper because of the massive volume. Buying directly from the rack will be tough, this is why most smaller gas stations are usually “branded” meaning they buy from shell from example at a cheaper rate than they could get from the rack but must advertise for them and pay their premium.

Smaller gas companies don't buy directly from Shell or Mobil or any of those, in fact all fuel comes from the same port unless their distributor has their own tanks and even then those are filled from the port.

The distribution company, no matter which you buy from has the ability to sell branded fuel. There are some like SEI which was purchased by 7/11 but I am able to also order the fuel from them as they are just a distributor. The detergents like Shell or Chevron use are an additive that is mixed in the tanker.

Some places like Pilot and Speedway do have their own distribution, they play the market by buying low in bulk from the port and hoping prices go up. This is also what Hess does, those are all corporate owned stores though except Hess that sold all its stations and deal mainly with distribution now.

It seems like the OP is doing the correct thing and really the only thing you can do, get the quotes from the companies and have it delivered as needed and cheapest that you can. If you have anyone with a CDL and Hazmat cert you can always get a tanker and refill the tanks on your own straight from the port which would be the cheapest route as you cut out the middle man. I currently run a gas station and I am trying to get them to pay for my certification as we already have a 4k gallon tanker that doesn't get used.

Edit: I currently run an unbranded station and owned a Mobil in the past.

 

[gasyone]

I actually work for the largest retailer of diesel fuel in the US. Retail Locations I am over do 200 million gallons annually. I recommend exhausting any leads you get especially if you can commit to a specific amount.


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