Buy Right

Slash your costs by knowing when and where to purchase fuel. And make sure you’re getting the most value from a fuel card and a fuel surcharge.

There’s no shortage of awareness in trucking about ways to cut fuel consumption – idle less, cruise slower, improve aerodynamics, maintain tire pressure. The other major way to cut the cost of fuel is simply to pay less for it. When you’re spending $60,000 a year on fuel, consistently shaving cents per gallon can save thousands of dollars a year.

Buying fuel where it’s cheapest, after deducting the state tax portion of the pump price, is a key strategy.

The International Fuel Tax Agreement between the United States and Canada facilitates the reporting, collection and distribution of taxes to states and provinces. You pay taxes every time you fuel, but your ultimate fuel tax bill is calculated according to where you drive. If you purchase fuel in high-tax states and drive most of your miles in lower-tax states, you will get a refund when you file your IFTA report.

You cannot lower your tax outlay unless you choose hauls that avoid high-tax states. What you have more control over is how much you pay strictly for fuel when the fuel tax is not considered.

“Take the tax out to see what the fuel’s worth,” says Canadian owner-operator Greg Decker, who’s leased to Caneda Transport. “Where the fuel costs the least – that’s where you buy the most.”