Fuel Availability
We're leaving Sunday from south Louisiana heading to Maine and parts in between. Was wonder if anyone is having problems finding diesel while on the road. Not worried about prices, it is what it is. T...
Forum Discussion
JRscooby wrote:dedmiston wrote:
There's a lot of misunderstandings about how fuel deliveries are paid for.
For starters, some of the locations are "company owned" or "salary operated". At those stores, the oil company owns the location and the station doesn't pay for the load.
Some companies work on true consignment where the branded company delivers the load and then the dealer pays as they go (on terms, of course). These are rare, but Amoco used to be the main major company to do this. I don't know if they still do. In these cases, Amoco owns the oil until it's sold. Amoco can call the dealer at any time and change the cost, and then the dealer needs to change their price.
In most cases, the dealers receive the load and then gets invoiced for it and they pay according to their terms.
In no case does the dealer hand the driver a sack of doubloons to pay for the load of fuel.
What you say is likely true in most cases. But there are still stations that buy fuel from whoever will deliver, and payment made, not to driver, but transferred no delivery. (Fuel shortage, most likely not have a supply).
Stations like that are usually "un-branded" and are both in remote areas as well as slowly vanishing. They're usually served by the larger "Jobbers" that service fleets and other accounts that are too small for the large distributors to bother with.
