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Says 20 cent difference =$1,400 per gas tanker extra profit!

Mark Hale does the math, and he comes up with an astounding $1,400 plus profit, per tanker, on each load of gas the distributor hauls to Columbia and sells at a 20cent per gallon premium!

About: Any logical reason for gas price difference

By Mark Hale

The gas price situation is only normal for little ol' Columbia.I've heard some of the companies say it cost more to get it here than to C-ville if the gas comes out of Louisville.



That stands to reason. It's 17 mile further south to Columbia, it should cost a little more.

Let's do the math. The typical tanker holds about 8000 gallons, at 20 cents per gallon (the difference between prices in Campbellsville and Columbia) 20 cents times 8000 gallons equals $1600.00. Divide 1600 by 17 (miles) thats $94.11 per mile the truck is getting for the extra 17 miles.

Of course you must figure the 35 to 40 cents per mile the driver get paid to haul it comes out of that. That would total (40 cents times 17 miles) a whopping $6.80. for the driver.

Deduct $6.80 from $94.11 that leaves $87.31 per mile to go 17 miles.Total $1484.27.

All the usual expenses for the truck are already covered under its existing coverage plans such as insurance etc.

The only extra expense to the truck is the fuel it takes to run it. At an average of 5 mpg times 17 miles thats 3.4 gallons more to come to Columbia at $2.50 per gallon, 3.4 gallons would cost $8.50 that leaves $1475.77.

So these companies are easily making $1400.00 more profit per load bringing it to Columbia after expenses.

$1400.00 divided by 17 miles is $82.35 cents per mile net profit.

No trucking company in the world makes that kind of money.

Not even 1/2 that much.

Something is definitely wrong when we have to pay the prices we pay for our gas compared to other towns around us.

But nothing ever happens even when we protest these prices.

I just wanted to give CM readers kind of an idea what the difference amounts to.
I have no problems with anybody making a fair wage.


This story was posted on 2009-08-01 02:15:30
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