Understanding "Fuel Price, Net of Fuel Tax"

Fuel Prices can be the death of the Owner Op if we allow it. If you are interested in finding out the fuel prices for your trip, I have found that many of the truckstops, and especially the major chains have their fuel prices online, and some even update throughout the day. Flying J . . Loves . . Petro . . Pilot . . T/A, and I'm sure there are many others available that I haven't found yet. One group fuel search is thru ComData, and this appears to be very extensive, although it does not list most Flying J's.

First, Get Fuel Prices for the Area you are going into. If you use the ComData site, it will show you most of the truckstops, except most Flying J 's, since only the Franchise locations accept ComData.

Next, Get Fuel tax rate Information from OOIDA Tax Rates, this site also gives the average price of fuel in each state that day, or even better, thru IFTA (This report may be very confusing to read), or the Company you are leased to, which may also give you AD Valorem, and Mileage Use Tax Rate Information.

Now, find the cheapest, or preferred fuel in your area, then look at the Tax Rate information you have, and figure the price net of tax.
Example. I went thru El Paso, TX and into New Mexico, sometime in 2005. The posted price for one particular chain was the same price on either side of the line, 1.889. So Take the price, 1.889, less the tax rate for TX of .20, for a net price of 1.689, while the same price for fuel in New Mexico of 1.889, less the tax for NM of .18, the net price in NM is 1.709, or .02 higher than Texas, and any Owner Op should know that if they save a buck or two at each fill-up, and they fill daily, that will be several hundred dollars saved in a year. One great reason to use the Comdata site, is it will give you the price, and also the net of tax price, allowing you to check to see if you have gotten the idea, but it is more limited in searches for specific areas, instead of the nation, for trip planning, it takes a bit more work, if price makes a difference on the direction you travel.

Be aware that the Tax Rate changes, and should be verified at least monthly, as with my example, NM has increased their tax rate to .21 in '06.

One great reason to use the ComData site, is the have the net of tax price figured already, so you don't have to figure it, but it is a good thing to know.

Another thing about using the ComData site is that it will show you the correct T/A pump prices (unsure why the T/A site gives higher prices, except that maybe it reflects the pump price paid for general public usage, instead of Commercial Usage.