Fuel revisited

Supplier delivered gas here last week. The owner came, so we had a nice visit. Some dealers hire transport loads delivered to their tanks, but he picks up his own at the pipeline terminal. A card gets him access to load 24/7. All additives are injected as he loads. This includes alcohol in the gas, and dye, and/or additive in the fuel. He can buy untreated fuel, as fuel oil, but says the treated fuel burns enough cleaner in furnaces, that he only buys treated fuel.

I suppose an unscrupulous dealer could then get "fuel oil" and sell it as diesel fuel.

Many stations now advertise alcohol free gas. We didn't discuss that this time. But last I knew, he had no way to buy it. Apparently some other terminals offer it.

Goofy NY has enabled farmers to buy diesel fuel tax free. However the dealer has had to pay the tax, and seek a quarterly refund from the state. With $50,000 some tied up at the end of each quarter, my dealer was concerned about being able to stay in business! But they have since fixed that. I hope he lasts as long as I do. Fuel suppliers have gone the way of machinery dealers.- Multiple locations- no personal service.

I was reading that counties can add a local tax on gas, up to $.50/gal on top of the $.18 tax. So how much cheaper is our farm fuel minus the taxes?

Someday you may get fuel from Powerdyne. Powerdyne is trying to set up shop in Terre Haute, about a mile from city waste treatment. City officials are getting picky over contract terms.

I never heard of Powerdyne before turning sludge and garbage into bio-diesel.

If bio-diesel made from McDonalds FF oil smells like french fries, wonder what bio-diesel made from sludge will smell like?
powerdyne

I forgot about bio-diesel. It's not readily available right here. I travelled once and bought some pure bio- (reclaimed veg. oil-no diesel) and mixed it myself. I had no troubles with it. I didn't get any nice aromas either!

Are you a farmer? Two reasons for asking. The usual bashing of alcohol in gasoline and the statement "Goofy New York has enabled farmers to buy diesel fuel tax free".

Modern view, profile, tells about me.
What bashing of alcohol in gasoline?

I think goofy entails a little more. Like the fact that the supplier still has to submit the sales tax on it to the state then wait for a quarterly refund.

Just as he told you that is about how it works.

A card gives the driver 24/7 access.
The computer will not let him load if his trailer vapor test or insurance has expired.
When he cards in it gives him a list of suppliers he is authorized to load off of.
He will pick the one he wants to use based on what price they quoted him.
Then it will give a list of products he can load off said supplier.

Based on the product he wants to load the computer will calculate what needs to be loaded.
In other words you could load shell and exxon gas out the same loading arm. It will just inject shell additive when loading shell gas and exxon additive when loading exxon gas.

Years ago we had a terminal where you selected off road diesel but the rack would load road diesel and the driver was suppose to climb on top of the trailer and pour in the dye.
They caught one out fit not adding the dye and selling it as road diesel and pocketing the tax money.
You can imagine the consequences once the government found out.
They forced the rack to install injection system and run the hauler out of business not to mention mega fines.

Thank you. I often wonder if I have trouble communicating. I am apt to be brief because typing is a challenge.
But when someone can't read and comprehend what's written, AND pulls assumptions out of mid air, I don't think it's me.

Interesting. Because it sounds like it's an improvement! It's really quite simple.

Biodiesel in every pump here in Minnesota, been for several years now.

Paul

But it's a much lower percentage if any in the winter. The first winter with bio was terrible for those using it.

I don't think it was you.

I think that's the process that was developed in Missouri. First plant was set up beside a chicken plant. Then they started taking in waste from elsewhere. When it was new they said most of the interest in it was from Europe.

I am a small time farmer and use diesel fuel in my tractors and combine. I understand how difficult it is for the supplier to pay the fuel tax instead of the farmer. Now the supplier has to keep a record of the non-taxed farmers and then ask for a refund meanwhile having his money tied up in the tax. I used to pay the tax and get a refund at the time I filed my income tax. That seemed to work but I guess the Govt. wanted the money quicker.

That does seem like an odd way to do it, puts a big financial load on the bulk fuel dealer if he has a lot of customers that use off road tax exempt fuel ?

In my state, North Dakota, the farmer or other off highway fuel user pays the tax to the bulk dealer at the point of sale. The bulk dealer is only required to forward that tax money to the state. At years end, the farmer can apply to the state for a refund of the highway tax money he paid at the point of sale for dyed off road fuel.
The only downside is that the state has had interest free use of that tax refund for as much as a year.
The state does not refund all highway tax for fuel used off road, I believe they keep 2-3%.

Forgot one thing. The allotment of fuel. been about a dozen years since i did that for a living. Used to be carded at6-8 terminals.Then they started dreaming up things like wearing hardhats, aprons, . Dont missed trying to get frozen lids off of tanks at gas stations after hours,etc. Surprised i never got robbed or hi jacked! One station i delivered to and still go to get their great hot wings , had some thug run from the cops a night or two ago and started shooting. He shot a cop in the foot. Thank God for his steel toed shoes. The thug? RIP.