Diesel for $2.20?

[ZmOz]

Earlier tonight there was a story on the news about the Trimet busses here in Portland. They're having to raise the cost to ride the bus because of diesel prices. They said they're paying $2.20 now and only budgeted for $1.50 in June.<br /><br />WHAT?! Where are these people getting diesel for $2.20? 3 bucks is a deal around here! Surely they don't get that big of a volume discount! Do city busses have to pay fuel taxes?

 

[FLATHEAD]

Re: Diesel for $2.20?

I would imagine they put it out to bid. Lowest responsible bidder gets the contract for the year.

 

[QC]

Re: Diesel for $2.20?

City busses do not pay fuel taxes . . . That's where the number comes from. Here in CA you add 18.3 cents for the feds, 24 something for the state and sales tax of 8.25% depending on the county for example. That would be ($2.20 + .183 + .24) * 1.0825 = $2.84 per gallon

 

[ZmOz]

Re: Diesel for $2.20?

Originally posted by Flahthead:<br /> I would imagine they put it out to bid. Lowest responsible bidder gets the contract for the year.

Where would any supplier get diesel and make their profit at $2.20 today? If that was the case gas staions would all have contracts too...surely they're not getting it for $2.20 when they sell it for $3.09.<br /><br />Even after taxes, let's just call it $0.45, it would be $2.64. There are no sales taxes here.

 

[MudIsFun]

Re: Diesel for $2.20?

I read somewhere that these cities get HUGE fuel credits from the Fed Govt to help with fuel costs. At the end of the day they are most likely itemizing these rebates into the price per gal.

 

[kenimpzoom]

Re: Diesel for $2.20?

Zmoz, many gas stations do have contracts. They are tied directly to the futures market. Usually a contract will be around 5-10 cents plus market price.<br /><br />The gas stations that dont have contracts are at the mercy of the supplier. They are usually higher during crunch times, but lower during off peak times.<br /><br />Ken

 

[ZmOz]

Re: Diesel for $2.20?

Originally posted by KenImpZoom:<br /> Zmoz, many gas stations do have contracts.

That's my point. The gas staions aren't getting $2.20 diesel by contract, so I doubt the busses are either.<br /><br />MudIsFun is probably right...WE'RE paying the difference.

 

[NOSLEEP]

Re: Diesel for $2.20?

Yes, You will pay. And you will like it!<br /><br />It's more than 4 dollars a gallon here. And we<br />don't like it either.

 

[JB]

Re: Diesel for $2.20?

Thanks, NOSLEEP. I needed that.<br /><br />I was about to whine about $3.10 a gallon at WalMart!! What's that in Canada Dollars?

 

[ZodFutMk2]

Re: Diesel for $2.20?

and you will like it

Oh NO I won't and you can't make me.<br /><br />I'll pay it because I have no other choice, but I sure as HE double toothpicks don't gotta like it!

 

[NOSLEEP]

Re: Diesel for $2.20?

JB..I always slipped out the back window when<br />math was on the table at school.<br /> But I believe there is 4.55 liters to 1 imperial<br />gallon. Diesel here is approx .98 cents per ltr.<br />So thats $4.50 a gallon = way to much cost for me.<br />I don't know what the Canadian dollar is trading <br />at today but I think it is around .85 cents to<br />the dollar.(U.S.)

 

[noelm]

Re: Diesel for $2.20?

is that all, in Ausralia at the moment we are paying $1.40 a litre which is over $6.00 a gallon!!

 

[NOSLEEP]

Re: Diesel for $2.20?

ZodFutMk2, look what noelm has to pay down under.<br />Now thats gotta hurt.

 

[FLATHEAD]

Re: Diesel for $2.20?

Contracting a fuel supplier is a normal practice. Just about every city, municipality and school district do as well as many business's. If your going to consume enormous amounts of fuel it makes sense to know exactly what the fuel cost will be. It's a crap shoot in a way. Would be interesting to know if Trimet has a fuel contract.

 

[ZmOz]

Re: Diesel for $2.20?

Canadian diesel is only $3.13/USD/US gallon and $3.97 for Australia.<br /><br />That's cheaper than many places in the US, and the fuel itself is much cheaper...since your taxes are higher. In california it's about $3.50 for diesel.

 

[wajajaja]

Re: Diesel for $2.20?

I was thinking the bio diesel route for my bug, but cant find enough used oil to feed a vw bug. the only source in town is a dunkin dounut. and they use hydroxenated solid 20lbs for a whole month before they change it out. I wont be eating donuts much either.

 

[noelm]

Re: Diesel for $2.20?

hey nosleep, it hurts alright, especially as we produce over 80% of our own oil, we just pay some sort of half ar$#ed world parity thing, it is even worse when I am lead to believe that diesel is only the scraps before the good stuff is made!