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      12-13-2011, 11:25 PM   #1
Ryebread
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Drives: 335d m-sport LMB
Join Date: Sep 2011
Location: Philaburbia

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Talking Diesel fuel information

I've seen a few people throwing around some reasoning behind the pricing of diesel and specifically why it's more than gas.

I asked my uncle about this subject today. He owns a Sunoco in the Philly burbs.
The feedback was interesting and although most of you have a.d.d., you should try to read this through. However, I'll underline what I found the most telling.



1. Tax

Taxes on Fuel in Pa
Tax per gallon!

**************FED. TAX***STATE TAX****OTHER TAXES* TOTAL
GAS******** .139********* .12********************* .2047****** = .4637
DIESEL**** .244********* .12*********************.2628*******=*.6268
Difference of nearly 16 1/2 cents, stupid!
*
Each state is unique.
http://www.gaspricewatch.com/usgastaxes.asp
Check out your state!
Pa is horrible. Worse than ny.


2. Zone

Zone pricing by the supplier to a location.* The supplier will price the fuel to that location based on what they have documented as the competitive pricing in that area.* The difference in eastern Pa. from one zone to another is usually only a few cents.* This means that the cost from one Exxon location to another is at most a few cents.


3. Cost

Differential in pricing from suppliers. Exxon*could be supplying the price in one part of the state or country at a slightly higher or lower price then its competitors.


4. Free enterprise and size of lot.

Quite a few of my competitors base their price on what they think is their competition and/or how much diesel they truly want to sell. What I mean by this is that the business owner knows he has less competitors selling diesel, while all his competition is selling gas.* That, along with the size of his lot and*where*his diesel dispenser(s) are will determine*how aggressive he will be with his price.* If he is too aggressive and he has a typical station facility he might cause too many large vehicles onto his lot which could drive his gas business down.

I asked him why in my neighborhood in Pa near Philly... diesel is 4.19 but in the exact same area, im talking 1 mile away, on the toll road, turnpike, it's 3.93. The Sunoco's*on the turnpike determine their price by what the pricing in NJ (lower State taxes) as well as in Carlisle Pa. This area is*the cross roads of the turnpike with Rt.81, 30, and 11 &15. So it has historically has set*what large diesel offering facilities will sell their fuel for.

He went on to say that "If I had a diesel vehicle*and I was traveling in Delaware, Pa., NJ or NY I would be looking for the lowest priced Sunoco or Hess location.* I will explain my reasoning when I see you. By the way, we have a large diesel offering area which I hope will be enlarged this next year, and we also look to the Turnpike, both east and west as well as North and south, and what the pricing is*in NJ as well as Carlisle.* We are also $3.93 daytime price* I have a lower price at night of generally 2 to 4 cents to encourage late night fueling."*

Web sights that can be helpful.
www.pennsylvaniagasprices.com*and* http.//autos.msn.com/everyday/GasStations.
*
^These sights will help you determine who has the better pricing in the area you are travelling.* They both have their inaccuracies.

Get gasbuddy app as well.

By the way, the main reason diesel is higher priced then gas is because it is being exported to China and India.* World demand is still high for #2 (diesel) fuel, while gasoline the demand is down.

Hope this helps.
Happy Holidays
*
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