Pop Quiz: Which fuel do you buy?

Broompilot · Mar 1, 2007

Thank you A-Team I had been BEATEN TO DEATH about one person being able to do 675 miles on a run. The post was made by a guy from Panther crying about that was just to much and asking What would you do?

See Mr. and Mrs. I am not the only one, and thanks T-hawk for pointing out the miles per hour...

Leo thanks again for your great advice and explaining this futher.

Tennesseahawk · Mar 1, 2007

Great post, Leo! It explains things a lot better than the chart that's been anchored, as things change. The most up to date info I have is from the Oct/Nov Landline (with the piggy bank on the front). I carry it in the truck with me.

I would also pick OH to fuel in. Not only cause IN is a ripoff, but also to top my tanks before heading to NY, and possibly New England. Unlike Leo, tho, I fuel in KY and VA every time I'm thru. Usually the cost overrides the lack of IFTA tax, not like IN. I also hit PA and IL if there's a hook on the route. Anywhere down south is good, cept FL, as they're high to begin with. NH is usually cheaper than the rest of New England if you have to fuel. I would say the only real rules here is to stay away from IN fuel, and look at the chart.

-Vampire Super Slooth Trucker!!!

LDB · Mar 1, 2007

Fueling in KY is anyone's option however that throws money away. The net cost of the fuel is no higher at many of the stations in OH than it is at the lower price stations in KY. The difference is that you get 28 cents of credit for every gallon purchased in OH and only 15.3 cents per gallon for KY fuel. You've got 12.7 cents more tax credit for every gallon bought in OH. KY on the other hand not only gives you less credit, they also charge 6.9 cents more per gallon burned in the state than the credit they give you. That means not only are you not getting full credit for the KY fuel you bought but they are sucking 6.9 cents of credit from every gallon you buy somewhere else as well. The only way to maximize savings is to understand how fuel taxes work and use the chart.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.

highway star · Mar 1, 2007

Sleep management in a thread about fuel taxes? All righty then...
(Twilight Zone music plays.)

jeffman164 · Mar 2, 2007

So let me ask if I'm understanding this correctly - If 2 states have identical pump prices , I should choose the state that has a higher rate on fuel used tax and state credit rate tax as long as those 2 numbers match each other as opposed to In whose #'s don't match.
Iv'e always topped my tanks off in In before heading out cause I thought I was getting a good deal. ( I guess there really is a SUCKER born every minute - that SUCKER being me - LOL]. THANK YOU for the post !!

LDB · Mar 2, 2007

>So let me ask if I'm understanding this correctly - If 2
>states have identical pump prices , I should choose the
>state that has a higher rate on fuel used tax and state
>credit rate tax as long as those 2 numbers match each other
>as opposed to In whose #'s don't match.

That's correct. Let's say you are running OH, IN and IL. You can buy fuel in any of the three states for $2.529. You'd buy 100 gallons wherever you bought. I know, it would hold different amounts depending on where you are but for this we'll say 100 gallons. Your wallet goes down by $252.90. Let's say you burn 20 gallons of fuel in each of the three states. You owe IL $7.34, IN $5.20 and OH $5.40 in taxes, totalling $17.94. On your 100 gallons purchased you get $16.00 credit in IN, $28.00 in OH and $36.70 in IL. You've got 40 gallons of that purchase left.

The taxes you already owe in those 3 states are more than the total credit from your IN purchase. You have to take $1.94 away from your pocket or other fuel purchases to complete the tax on those 3 states. You have nothing left toward the tax where you burn the other 40 gallons. If you bought in OH you have $10.06 in credit left after paying for those states. That will pay the tax provided the rate is no higher than .2515 where you burn it. If you happen to exit IL into KY, AR, MO or IA you are ok but if you go back into IN you are screwed. If you bought the 100 gallons in IL you would have $18.76 in credit left. Even if you toured IL and burned the other 40 gallons for $14.68 tax you'd still have $4.08 in tax credit to take with you.

Obviously the pump price wouldn't be identical in those states but it has to be over 21 cents a gallon less in IN before you are better off buying there.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

Tennesseahawk · Mar 2, 2007

I see your point about KY. Basically, it ends up being a .20 difference between OH and KY if you subtract the surcharge from the credit in KY. However, I've often seen fuel close to .20 cheaper in KY than OH. Maybe not too recently, as prices are all over the place. I just paid 2.59 in NE and regret topping my tanks for a .26 credit at that price. I would've rather gotten it in IL for .13 more credit and much cheaper.

-Vampire Super Slooth Trucker!!!