Blog / Desire to Save 12 - 15¢ per Litre on Diesel?
Tuesday, 12 February 2013 at 23:04
Driving to be effective today the prices at Husky for diesel fuel were listed as $1.269 per litre. How are truckers designed to make a living when 40 - 50% of the money they make goes up in smoke? It’s the worst it’s been in the memory of truckers who have been driving for longer than 30 years.
You can find reasons, needless to say, including the costs of refining low sulfur diesel fuel to satisfy pollution laws as well as the runaway demands for diesel overseas, but not every one of the components which are to the price of a litre of diesel fuel are past the power over owner-operators as well as other small company truckers.
Sounds crazy? It’s not.
Sure the front-end constructed into the purchase price in the refinery depends upon factors that can't be addressed: costs of crude; transportation; refining costs; taxes; more taxes; and, of course, oil company profits. However, once it’s on the truck leaving the refinery those costs are less based mostly on fixed costs, because they are market conditions.
When buying at the pump, a trucker’sfuel costs are subject to many factors, including demand and supply - such factors are beyond an owner-operator’s influence.
The greater companies seem to be in a position to weather these market conditions better, do you understand why? One justification is that they buy in large quantities, or directly from the refinery and steer clear of make payment on retailers or cardlock operators’ markups. They become their very own distributors and save.
Inequality of buying power, that’s their competitive advantage; the owner-operator or small enterprise cannot afford to get in big amounts or buy enough to deal directly using the refineries.They’re stuck, right? Wrong.
Imagine if owner-operators or small companies could buy their fuel at 12 - 15¢ below the price on the pumps? How can they do this? They could join LifeLine Truckers where we have arranged for access to 50 cardlock locations in Ontario where they can pay a cost in line with the refinery end of products, not the marketplace end of products. They could stand toe-to-toe using the big companies and purchase fuel at a price lower than will be possible without volume pricing and special arrangements.
Do you enjoy saving 12 - 15¢ per litre about the fuel you put to your truck(s)? If that's the case, join a large number of others who consider benefit of discount pricing on fuel. Make the connection that can make the real difference.