The four parts of a delivered price
- Rack price: the posted wholesale price at a specific terminal, reset daily and specific to the product and brand.
- Freight: the cost of hauling from that terminal to your tanks, driven by miles, load size and wait time.
- Taxes and fees: federal excise, state excise, environmental and inspection fees, plus any local add-ons.
- Supplier margin: the jobber's cents-per-gallon for taking title, financing the load and running the truck.
Rack-plus versus delivered pricing
A rack-plus contract quotes your price as the terminal rack plus a fixed cents-per-gallon. It is transparent: you can verify the rack independently and you know exactly what you are paying the supplier.
A delivered price bundles everything into one number. It is simpler to read and harder to audit. If you take delivered pricing, ask for the freight component in writing so you can tell a rack move from a margin move.
Branded versus unbranded supply
Branded product carries the refiner's additive package, imaging rights and program requirements, and it typically prices above unbranded. Unbranded product is usually cheaper per gallon but comes without brand support or image funding.
If you are debranding or evaluating a new brand, price both ways. The gap per gallon multiplied by your annual gallons is the real value of the brand program to your site.
Why quotes expire so fast
Racks move daily and sometimes intraday. A quote from Tuesday is not a quote for Thursday. Ask every supplier for the effective date and the rack it references, and collect quotes inside the same 24-hour window.
Where buyers actually save money
- Shorten the haul by choosing a supplier lifting from a closer terminal.
- Order full loads instead of partials whenever tank capacity allows.
- Give the supplier a predictable delivery window so it can batch your stop.
- Add tank monitoring so replenishment is scheduled instead of an emergency run.
- Keep two qualified suppliers active so you always have a comparison and a backup.
Questions
- What is a terminal rack price?
- It is the posted wholesale price for a specific fuel at a specific terminal, reset at least daily. Jobbers lift product at that price and add freight, taxes and margin to build your delivered cost.
- Should I ask for rack-plus or delivered pricing?
- Rack-plus is more transparent and easier to audit over time. Delivered pricing is fine if the supplier will state the freight component separately.
- How much margin does a fuel jobber make?
- Jobber margins on wholesale loads are typically a few cents per gallon, which is why load size, haul distance and delivery efficiency matter more to your price than hard negotiating on margin alone.
Ready to compare real numbers? Post your volume once and let jobbers in your radius bid.
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