The fuel business is very complicated because of all the fingers in the pie; the enormous cost involved with handling hazardous materials; the mega financial risk to big players; and things such as allocation and credit allowances.
BUT………………………
Your jobber makes more money off you than he makes off a service station or the service station makes in profit.
He is a jobber and buys at rack price. He then sells to service stations. His mark up to them is profit and transportation. Stations buy on net gallons that are temperature calculated.
You are a end user because you will not take full tanker loads. He needs to haul full tanker loads into his own bulk plant and then deliver in smaller trucks. You buy on gross gallons.
Look at it this way. (Numbers not correct but on used to compare.) Service station......... Rack price $3.00 Jobber mark up $.10 Transportation $.02 Station pays $3.12 Sells for $3.20 so they make $.08 per gallon Jobber makes $.10 and station makes $.08
Farm or other small user Rack price $3.00 Jobber mark up $.10 Transportation to bulk plant $.02 You pay $3.20 so $.08 is the bulk plant and small truck profit. So really the jobber made $.18 off you but his cost was higher.
You could cut your cost if you could take tanker loads and buy at net gallons. If you do not feel you are getting a fair shake price fuel from another jobber.
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