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Does anyone know where to get a gas truck?
Published Sunday, September 14, 2008
Even before a few gasoline sellers started jacking up prices under the threat of Hurricane Gustav, several readers pointed out the latest in a long line of fuel price discrepancies in our area.
Although two different readers pointed it out and their tales were slightly different, the gist was essentially the same.
Each reader noticed that in a single day the price difference between a gallon of unleaded gasoline sold in Natchez and the same type of gas sold in Brookhaven was separated by approximately 60 miles of asphalt and 30 cents a gallon.
“How can this be?” the reader asked?
“Those (expletive deleted) are just ripping us off,” the other guy wrote in an e-mail.
It’s a problem that we’ve attempted to explain for years.
A large number of citizens are convinced that the small brotherhood of local gas distributors is simply fixing the price somehow.
The gasoline distributors say it’s not there fault. Most often, they either won’t comment on the high prices or they say it’s just the price they’re charged by their suppliers.
Or, they’ll say the cost of delivering the fuel to our remote corner of the world drives up the cost.
Regardless, attempting to beat them up about this seems to do little good.
After hearing the latest round of reader complaints, the want-to-be entrepreneur in me got to thinking about a solution.
The key is flipping this problem around. Rather than looking at the high prices as a problem, we should look at them as an opportunity.
If the gasoline is cheaper in Brookhaven, what would it take to get the gas here?
First, I thought of constructing a Brookhaven-to-Natchez gasoline pipeline. Heck, we got a grant to construct a 10-mile pipeline bringing convict sewage from the new prison into Natchez, couldn’t we get something to lower gas prices? Consider it economic development.
But constructing a pipeline would be complicated and expensive.
What if there was a simpler method?
And what if the plan provided for at least one new job — a relatively lucrative job at that?
Somewhere out there, a young entrepreneur should listen up. The solution is simple.
Buy a used fuel truck, drive it Brookhaven, fill it up and haul it back to Natchez.
While that may seem a crazy notion (OK, it is a bit, but bear with me), the math works out quite lucratively.
A used fuel truck with the capacity of 4,000 gallons can be bought for anywhere between $10,000 and $30,000.
Even if the entrepreneur simply halved the difference between the Natchez price and the Brookhaven price, pocketing 15 cents per gallon, they’re making good money.
Just one round trip drive a day, five days a week, to fill up in Brookhaven and return to Natchez would cost approximately $600 a week.
Assuming all the gas was sold, five trips with 4,000 gallons a trip and 15 cents profit a gallon yields $3,000 of gross profit.
For just a few hours of work a week, you’d net (pre-tax) approximately $2,400. If you spent four hours a day, your earnings would be $120 per hour.
Anyone else see gold in becoming a gas hauler?
Does anyone know where I can buy a good used gas truck?
Kevin Cooper is publisher of The Natchez Democrat. He can be reached at 601-445-3539 or kevin.cooper@natchezdemocrat.com.
Comments
Posted by bombingeight (anonymous) on September 14, 2008 at 12:59 a.m. (Suggest removal)
"The gasoline distributors say it’s not there fault."
Maybe not... but it is "their" fault in many cases.
How many distributors and sellers bought their product at last week's price, for example, and have sold it at a price of whatever the market will bear?
Posted by fatherof4 (anonymous) on September 14, 2008 at 1:02 a.m. (Suggest removal)
Add into it insurance on your truck, business liabilty insurance, upkeep on truck, workmans comp, sales tax, income tax, social security tax, medicare tax, and self employment tax on your profits. It might not sound as good.
Posted by Peace007 (anonymous) on September 14, 2008 at 1:16 a.m. (Suggest removal)
Well that might work just swell Kevin, as long as Brookhaven isn't limiting the amount of gas a person can purchase to 10 gallons, as I've heard is happening is some towns. If you want to find out where the cheapest gas is and where to find the truck, I'll go in halves with ya. lol
Posted by sammohon (anonymous) on September 14, 2008 at 1:18 a.m. (Suggest removal)
The gas already in the tank was bought at the lower prices...pre-hurricane...the new gas the distributors buy will be higher, but distributors and retailers raising the price in anticipation of a crisis is gouging...the president and the governor ought to prosecute.
There were people paying $6.00 to $7.00/gal. in Alabama and Georgia two days prior to Ike's landfall. I bought gas yesterday in Gulfport for $3.86...you tell me what the explanation is. The loophole seems to be that if the distributor/retailer raises the gas price prior to a disaster declaration then they're off the hook and can get what the want.
The loophole needs to close around their necks.
Posted by fatherof4 (anonymous) on September 14, 2008 at 1:58 a.m. (Suggest removal)
But if they buy gas at a high price and the prices fall, they have to take a loss on what they have left in their tanks to stay competitive or to sell it.
Posted by gemccull (Gary McCullars) on September 14, 2008 at 8:08 a.m. (Suggest removal)
Gas prices in Natchez: http://autos.msn.com/everyday/GasStation...
Gas prices in Brookhaven: http://autos.msn.com/everyday/GasStation...
Posted by oldguy (anonymous) on September 14, 2008 at 12:53 p.m. (Suggest removal)
I have lived most of my life in Natchez and have been paying for gas/fuel since I started driving in 1969. Natchez has always paid premium prices for gas and now diesel compared with areas such a Jackson, Monroe, and along I-10 around the coast because of no real competition or worse the collusion between the local good ole boy distributors to keep it higher. Even comparing the two local superstore stations one finds routinely lower prices at the Vidalia site versus Natchez. At both locations the price is just low enough to be below the group prices at the local distributor owned stations when compared to places out of town.
It is even worse with diesel, you can go 90 miles in most any direction and routinely find diesel $0.20-$0.30 per gallon less. In Baton Rouge the weekend before Gustav, pumps in Natchez were $4.39-$4.45 while St. Francisville was $4.19 and BR was $4.19-$3.99. If you figure $0.05 per gallon to transport 6,000 gallons, then add $0.10 per gallon markup, then $0.10 gallon station profit, that means the BR stations are selling diesel for less than what the local distributor claims to be paying, something doesn't compute does it? The distributors will say "we all get it from the same tanks" to explain why they all have the same pump price, then in the next breath will state that the price they pay per truck load changes daily, if that is so then why are the pump prices all the same brand to brand? Would they have us believe every tanker in Natchez goes to the refinery the same time on the same day? They hike prices on existing stocks in anticipation of price increases then if the price is higher they apparently again raise the already higher price to cover the next increase. When prices start down they will say they will be stuck with tanks of high priced product, but as we typically see the pump prices will stay up for 2-3 weeks after we hear news reports of falling prices, again making $$ both ways. They will never convince me they are suffering.
Speaking of diesel prices, how many of you diesel users have noticed during TV reports from around the country that as the station price boards are flashed across the screen that in some parts of the country diesel prices are equal to or less than the regular gas prices, the way it was around here back at the turn of the century.
The local distributors, two of whom I know personally, always plead "not my fault it is what I paid". Frankly, sadly, I DO NOT TRUST YOUR ASSERTIONS, but I could be wrong and the only way I will ever believe what you say is after the State Auditor, Attorney General, and State Tax Commission all three do independent detailed audits of lets say the last five years of all your business records, to detail what you paid, when you paid it, to whom you paid it, when you delivered the product to the pump, what the pump price was at your company stores, and if after the purchase you got rebates back from the refineries.
Posted by sammohon (anonymous) on September 14, 2008 at 4:29 p.m. (Suggest removal)
$3.89 in Gulfport today.
Posted by Omega (anonymous) on September 14, 2008 at 11:40 p.m. (Suggest removal)
Let’s see, it would seem the price would depend on the distance the gasoline has to be carried from the terminal to its destination. There is a terminal in Vicksburg that is approximately 70 miles from here. If the Brookhaven gasoline comes from Vicksburg that’s a distance of approximately 95 miles. There is also a terminal in Archie, LA that is approximately 38 miles away. As a mater of fact Placid shows bulk terminals to be in these locations in MS. Collins, Greenville, Meridian, Pascagoula, and Vicksburg. In Louisiana they show, Arcadia, Archie, Chalmette/New Orleans E, Convent, Kenner/New Orleans W, Lake Charles, Meraux/New Orleans, Opelousas, and Port Allen. If Brookhaven is getting there gasoline for some terminal I don’t know about in the Jackson area (but I believe Jackson area gets theirs from Vicksburg), that’s about 55 miles. Now, Natchez to Brookhaven is around 60 miles. I have to agree with Kevin here. The math doesn’t add up. To one writer, vehicle maintenance, insurance etc. yes, but that still leaves a good profit margin. Workers Comp. only applies if you have more than a certain number of employees.
To another writer, your right about the price increases. Oil and gasoline is bought on a futures market and the price up and down should be delayed for days and weeks once the price goes up or down. Around here if oil goes from $100.00 to $112.00 the price at the pump goes up quick. However, when the price drops from $105.00/bbl to $99.00. it takes weeks before the lower oil price is seen at the pump. It looks like someone with the state that does consumer protection needs to take a closer look here.
Posted by getalifenatchez (anonymous) on September 15, 2008 at 12:05 a.m. (Suggest removal)
Gas on average was $3.69 in the Jackson metro area this Sunday evening before returning back to Natchez..... It was $3.79 at the Chevron on Hwy. 84 @ I-55 (Brookhaven) this evening as well.... Did not notice prices around Natchez--- but usually we are much higher than surrounding cities/towns with the exception of nearby small, rural towns (Bude/Meadville, Woodville, Fayette)...
Posted by NJM (anonymous) on September 15, 2008 at 8:53 a.m. (Suggest removal)
on friday morning i came through at 8:00 and the price of regular unleaded at citgo was 3.69....and then as everyone started to talk of the prices going up in other areas, i came back through at 10:00 and guess what? citgo had went up .20 cents to 3.89!! and the cheveron right down the street was only 3.69!!! how can they do that?
Posted by ntzslums (anonymous) on September 15, 2008 at 9:42 a.m. (Suggest removal)
There's a Chevron in Meadville that often sales their gasoline 5-20 cents per gallon cheaper than the Chevron stations in Natchez. Hey, maybe they are driving to Brookhaven and getting their gas?! As far as fuel prices going up at the "local" stations.....that's just the same ole, good ole, rip you off , Natchez"gas cartel" .....talk about needing alternative fuels!!!
Posted by EnKiKur (anonymous) on September 15, 2008 at 1:32 p.m. (Suggest removal)
Our local suppliers should get an environmental award from the city. High gas prices are good for the environment. They help keep trash out of the landfills by giving gasoline users less money to spend on other things, thus decreasing the overall amount of trash. High gas prices force people to drive less and this decreases carbon emissions and global warming. HIgh gas prices are also healthier for people since they have less money to buy food with; Mississippi is the most obese state in the nation isn't it? Seems to me the local fuel suppliers are the unsung and unappreciated heroes here.
Posted by Omega (anonymous) on September 15, 2008 at 1:47 p.m. (Suggest removal)
EnKiKur that's the Al Gore and National Democratic Socialist Party way. You would be right except it leaves us with less money for the light, water and other bills. HAHAHA good one though.
Posted by Swapmeet (anonymous) on September 15, 2008 at 3:29 p.m. (Suggest removal)
"Posted by Omega: As a mater of fact Placid shows bulk terminals to be in these locations in MS. Collins, Greenville, Meridian, Pascagoula, and Vicksburg... If Brookhaven is getting there gasoline for some terminal I don’t know about in the Jackson area (but I believe Jackson area gets theirs from Vicksburg), that’s about 55 miles."
I don't think Brookhaven would get their gas from Vicksburg if it's a strictly mileage deal. I drive through Brookhaven and Collins every week. It's about an hour from Brookhaven to Collins on Hwy 84. Brookhaven to Vicksburg would be, what, about an hour and a half to two hours?
Posted by NJM (anonymous) on September 15, 2008 at 4:45 p.m. (Suggest removal)
yeah...enkikur...we are really gonna see people loosing weight because of the high has prices...haha....unsung heroes my rear....
Posted by redusmfan (anonymous) on September 15, 2008 at 6 p.m. (Suggest removal)
Well, right here in Rankin County today, the price varies from $3.99 a gallon to $3.65 a gallon. That was just 8 miles apart.
It depends on competition, when they walk outside and see their neighbor has gone up to $3.95, they raise there prices to match so they can make all the money possible before they refill there tanks again...lol...
A total rip off.
Posted by NtzMom55 (anonymous) on September 15, 2008 at 7:30 p.m. (Suggest removal)
I was in Brookhaven before Gustav came through and Shell, Chevron and Exxon were all $3.39 per gallon. At that same time, gas was $3.69 in the Natchez Shell, Chevron and Exxon stations. There is no excuse for such a hugh price difference between these two towns that are only 60 miles apart. Prices in Brookhaven after Ike have come close to the prices in Natchez now, though. I'm still convinced that the Natchez oil companies are charging more than thy should, taking advantage of us all.
Posted by Omega (anonymous) on September 15, 2008 at 11:06 p.m. (Suggest removal)
Swapmeet your right. I don't go that way often.
Posted by Swapmeet (anonymous) on September 16, 2008 at 12:26 a.m. (Suggest removal)
"Posted by Omega: Swapmeet your right. I don't go that way often."
I hope you didn't take that as a "gotcha" post omega. I just didn't know if you knew where Collins was. I go through there every week so I happened to know its proximity to Brookhaven. Have a good one.
Posted by Omega (anonymous) on September 16, 2008 at 10:09 a.m. (Suggest removal)
No, I didn't take it that way. I forgot Collins was that close to Brookhaven.
Posted by iameubu (anonymous) on September 16, 2008 at 5:11 p.m. (Suggest removal)
I agree with you oldguy. Most of the stations around here always seem to have exactly the same prices and when they change, they all seem to do so within minutes of each other.
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