NOTE: (April22-May22)  United States has exported an average of 6.3 million barrels of fuels per day (bpd), up 22% from the year-ago period, while its imports of fuels have dropped by 14% in that same time period.

We get numerous calls from drivers asking, “Did we lose our discounts”? The answer is no!

Your discounts are based on the wholesale base cost plus or minus a fee so when wholesale prices jump like we’ve seen during the last 45-days or so your discount will be effected. During bumping times this is when the “Fueling Strategies” are so important to help you plan when and where to buy your fuel.

Let’s say the wholesale cost of fuel jumps $.40 cents per gallons. The wholesale price of fuel is what the retailer pays for fuel then sells to us with a plus or minus cents per gallon factored into the cost.

Here’s what happens when wholesale prices rise”

Tuesday retail price per gallon is $5.659 and with your discount you paid $5.0090, saving $.65 cents per gallons.

Wednesday retail price per gallon stays at $5.659 but today the wholesale price goes up $.40 cents per gallons and retailer pays more for the fuel. This added cost is passed on to the driver so with your discount you now pay $5.409, saving only $.15 cents per gallon.

Thursday retail price per gallon stays at $5.659 but today the wholesale price goes down $.75 cents per gallons and retailer pays less for the fuel. This lower cost is passed on to the driver so with your discount you now pay $4.909, saving $.75 cents per gallon.

What are the components of the retail price of diesel fuel?

The cost of producing and delivering diesel fuel to consumers includes the costs of crude oil, refinery processing, marketing and distribution, and retail station operation. The retail pump price reflects the costs and the profits (and sometimes losses) of the refiners, marketers, distributors, and retail station owners. The relative share of these cost components to the retail price of diesel fuel varies over time and varies among regions of the country.

The retail price at the pump also includes federal, state, and local taxes. The federal excise tax for on-highway diesel fuel is 24.30 cents per gallon, and the federal Leaking Underground Storage Tank fee is 0.1 cents per gallon. As of January 1, 2022, the average of total state taxes and fees for on-highway diesel fuel was 32.66 cents per gallon. Sales taxes, along with taxes applied by local and municipal governments, also contribute to the final selling price of diesel fuel. Local market conditions and factors such as the location of the fueling station can also affect retail diesel fuel prices. Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase diesel fuel for resale to the public.