OT- Yet another irritating trend with diesel prices

As if diesel running 30 cents a gallon higher than regular gas isn't annoying enough...now the salt in the wound is more and more (interstate truck stop) stations charging extra for credit card purchase of diesel. No extra for gasoline...only for diesel.

Pilot is 6 cents a gallon higher for credit card purchased diesel and Love is now 3 cents higher. Love is kinda sneaky about it too, with only minimal signage warning you of that little tidbit.

I inquired to a truck stop manager as to the "why" about this today and contends the credit card companies are now charging them a higher rate for diesel sales, and that they sell more gasoline. The irony of that to me is I would think the actual dollar amounts for diesel at truck stops would be more than gas, just due to volume going into semi trucks compared to cars, and thus the credit card companies, if anything would discount for diesel, not charge more. Not to mention the fact that why now, and not previously ? So both his contentions sounded like total BS to me.

Anyone here with a relative in either the credit card business or fuel business with any insights into what's really going on here ?

Also, is this trend happening in your state too, or is it just an NC and SC phenomonen ?


(and yet more salt in the wound is that if you are hauling a trailer and have to pull into the trucker lanes, where they never have credit card machines that work for "normal" credit cards... you can't just call on the intercom to get the pump turned on any more, but have to walk in, wait in line, and leave credit card, walk back out, pump fuel, walk back in again, stand in line again, and then pay )

Hi D,
Sounds like baloney to me. Why would the CC co. give a hoot WHAT you are buying??
I would guess that most commercial drivers use a CC to buy their fuel - maybe it's simply a way for the fuel jobbers to add their own version of a "fuel surcharge" that seems to be so popular with freight haulers.

Matt

Just another reason to make us "weekend warriors' with Freightliner trucks, wonder what ever possessed us to buy a big rig in the first place. Between the scales, the ripoff price of diesel these days, the incredible difference in license fees ($30.00 for two years for regular vehicle-$400 minimum for a NON-CDL truck licensed at less than 26,000 pounds), I'd just as soon stay in my shop and leave the driving to someone, who has a better control of their temper. With the trip permits going through each state if I'm over 26,000 pounds (almost always)what's the point of driving. With each states attitude that they should rape the truckers, why shouldn't the credit card companies get in on it. Heck everyone else nails trucks. Even my favorite even-mannered trucker, is driving less and less these days. WHY HASN"T Diesel come down in price? Here in Oregon it's still over $3.00 a gallon. Hey Don- want to buy a nice Freightliner? I know you wouldn't dream of it.

"walk in, wait in line, and leave credit card, walk back out,"

Don,
now illegal to do in the UK, you can insist that the card never leaves your hand.
They have to bring a machine to you, you insert card, enter pin number and remove card.
Seller never gets to hold card or see pin number.

Diesel fuel will never come down in price with this new low sulfur stuff -- any excuse to keep prices high. Back in the early 60's, when regular gas was selling for 32 cents, diesel was selling for 21 cents. There is no reason for that ratio not to exist today with unleaded gas and all. The oil companies can gouge truckers because truckers have to drive their rigs where, if they piss off the general public, mommies could cut back driving their gas-guzzling SUV's.

Regarding leaving your credit card with the cashier while you pump, a while back in this area there was a rash of people driving off before paying their gas tabs so everyone had to either leave their credit card or cash with the cashier ahead of time. Once as I went in to drop off my cash, there was a guy at the counter arguing with the cashier about the amount of money he dropped off before his pump cut off at $20 -- he said he left a $50 bill! Figuring this argument wasn't going to end soon, I went on to the next station down the road. When I drove past the first station a half hour later and saw two Sheriff's Department cruisers parked outside, so I figure something got out of hand. (Florida now has a law where "drive-offs" can lose their license for a year.)

I'd like to tell you some good reasons why all that is the way it is, but I sure can't think of any. Sounds like the typical erosion of customer service mixed in with good old greed.

Investing heavily in petroleum company stocks is about all the satisfaction I think you're gonna get.

I don't let my credit cards out of my sight, too much has happened in the past to people I know, such as additional, fraudulent charges, etc. If I can't pay at the pump with my card and must go in to leave a deposit, I leave cash, usually a $100 bill.
And I make them give me a printed receipt for the deposit, telling them " If you don't trust me to come in and pay for my fuel, then I don't trust you to hold my money". I also tell them I don't let my credit cards out of my sight, but that I will be paying with card, so don't take the fuel out of the deposit cash.
I can be an ornery old fart when I want to!
Dave

This has got to be just another hold up,i feel sure the issuers of credit cards really dont care if you charge diesel or dog crap on the card, another excuse to screw the customer for as much as they can.How will y,all feel about leaving your NEW card in the station while you fill up?These will not even have to swiped in the machine,but will be read by a type of RFID,if i understand it correctly.
LER

I know there are people who do not think or believe that the few major petroleum corporations and the current adminstration have any influence or collaboration when it comes to fuel pricing. I personally believe there is more of a good old boy network working here. That is my belief.
I wonder if the high diesel price we diesel truck drivers pay at the pump is a way to help hold down, or subsidize the cost of home heating oil. It would be a lot more politically correct and better public relations for the oil companies to have truckers pay a little more for diesel then have Grandma freezing to death because she can not afford to heat her house. I do not know this is happening but wonder if it could be a factor. Of couse prices could be all market driven, I don't claim to be an expert on the subject.
Rick

Maybe the surcharge helps defray the cost to maintain the paving in the pump area due to all the heavy truck traffic? Just a random thought...

Diesel fuel will never come down in price with this new low sulfur stuff -- any excuse to keep prices high

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Low sulfur accounts for about 7 cents a gallon of diesel prices now, and will account for about 10 cents when the target sulfur content figure is reached in 2008. This according to Consumer Reports recently.

This means since diesel historically would be about 5 cents* a gallon cheaper than gasoline, that even in 2008, diesel "should" be higher than regular gas by only 5 cents a gallon. For the past year, diesel has been 30 cents higher than regular...sometimes much more, depending on station.


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*I'm basing that estimate on the fact that when gas was $1.00 a gallon, diesel would be perhaps 96 or 97 cents a gallon. But as a percentage of difference, that would mean diesel should be perhaps 5 cents a gallon cheaper when gas is at $2.15 a gallon.

Having said that, one would think the same thing about the difference in 89 and 91 octane gas, but that 10 cents a gallon difference between octane ranges hasn't changed much either.

I wonder if it has to do with "deep pockets." For instance, when the "sue-ers" decide to sue somebody, they won't go after John Poor Doe. Instead, they bring suit against outfits with big money.

In the same way, the folks selling fuel figure that they'll gouge the truckers, knowing that there are some big fleets out there and if they're big, they must have money. To hell with the owner-operator, he'll just have to suffer.

I thinke we are beginning to see there is no connection between pump prices and the real cost of fuel. Just look at the way gasoline prices went down before the election. Now, they're going back up.

My 2¢, not based on any behind-the-scenes knowledge of the subject.

Orrin

The irony of that to me is I would think the actual dollar amounts for diesel at truck stops would be more than gas, just due to volume going into semi trucks compared to cars, and thus the credit card companies, if anything would discount for diesel, not charge more.

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Don't know about down your way but we have a LOT of truckers in this town. They all buy their diesel at cardlock stations with prearranged accounts.

Investing heavily in petroleum company stocks is about all the satisfaction I think you're gonna get.

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Yep. I like it when the prices go up.

Ultra low diesel is the newest epa mandated regulation. According to the Owner Operator Independent Driver Association magazine there are IIRC thirty different regional requirements for fuel content regulations. A refinery has to set up to make each type and has to make sure the pipes etc are cleaned between each run of fuel type. This is expensive and probably unnecessary but how do you get the epa and or state regulators to listen to reason. This situation along with the fact that no new refineries have been built in the last twenty years due to resistance by environmentalists makes for an artificial shortage of diesel. Also an excuse to raise prices. You can have cheap regulated fuel prices with long lines or you can have the present system of floating prices based on what the users are willing to pay. These topics are also covered periodically in publications such as the Truckers News which is free at the exit door of most truck stops. If we drill in Alaska wildlife refuge and offshore and give a green light to a bunch of new refineries then competition will drive the prices down. As to higher credit card prices for diesel i believe that this may reflect the huge numbers of independent truck owners who are losing their shirt and using their personal cards in a desparate attempt to hold out a little longer hoping that their situation will improve. Then they go bankrupt and or default on their cards. This is not lost on credit card company market analysts. Of course they cant differentiate between diesel pickups,construction eqpt, delivery vahicles so they just jab everybody.

D.,
Several months ago I got some diesel in Georgia on I-85 and it was 3 cents difference between cash and CC.They had an employee walking around writing down all the vehicle tag numbers right after I got out of my truck.I had to do the long walk to the counter and show that I had cash to pay before they switched the pump on.

I wouldn't leave my CC at the counter,sounds ridiculus

[ 12-08-2006, 06:06 PM: Message edited by: Mr B ]

Truck stops have always charged aprox 3% extra for credit card use because they have to pay the card company that much in fees. The manager referred to earlier was claiming that the extra was just because it was for diesel. Truckers carry a sort of debit card which the fuel vendor will accept as cash. If they are using their own personal card that may red flag them as people in financial trouble which is why i offered my previous theory.

Truck stops have always charged aprox 3% extra for credit card use because they have to pay the card company that much in fees

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None of them charged extra for credit card purchases of diesel until recently...at least none I've ever encountered in my travels thru NC, SC, GA and FL over the past 10 years. Where on earth are you conjuring up that little tidbit ?

The other falacy in that argument is that the same 3 percent extra by the CC company is true of gasoline, and yet the stations don't charge extra for credit on gasoline.

You can purchase the product at the price that is posted on the price sign or pump if it does not say "CASH PRICE". Charging extra for the use of a credit card violates Federal Law. If you feel that their method of posting their prices is deceiving you can report them to your state division that is responsible for making sure that their pumps are properly calibrated, every state has such a department.

The reason they aren't charging fees on gasoline is simple, there is much more competition with gas sales than with diesel sales and no one charges fees on gasoline sales. As long as no one is complaining about the CC fees on diesel, they will get away with it for as long as they can.

TMT is exactly right about why the charge is on diesel and not gasoline. All has to do with competition. The 6 cents per gallon would be just about what the CC companies are charging them now, with diesel prices at their current level.

Around here, Enmark has been discounting on gas purchases paid with cash or check, but no discount for credit or debit cards. I guess that way they're not technically charging extra for CC use, but rather just discounting for not using a CC. I didn't realize until recently that the fees to a merchant for taking a debit card are about the same as for a credit card.