End of ag diesel?

[grasmo]

Have you noticed that with fuel prices reaching 4. 00 per gallon, it is now a factor in the amount of savings in purchasing OFF-ROAD diesel. Lets see:



Then: Road diesel 2. 29 /gal OFF-ROAD diesel 1. 79 + sales tax = 1. 92

A savings of . 37 pretty good savings



Now: Road diesel 4. 35/gal OFF-ROAD diesel 3. 85 +sales tax=4. 13

A savings of . 22 not so good



I predict that soon OFF-ROAD diesel will not be economical. I am already buying ON-ROAD diesel to put in my tractors. Boy I tell you things can sure sneak up on you..... I believe it is all a scam and the real suffering is on its way

 

[Coalsmoke]

Grasmo, noticed the same thing here, even with bulk purchases for heavy equipment, the ag stuff is not nearly as much of a savings as it used to be. It's a bad time to be in the heavy construction industry, I think we'll see some changes in the next couple years and a lot of people not making ends meet.

 

[Cummins Cowboy]

the problem is the retailers are hosing you on the ag diesel, the difference should be about . 40 a gallon because the station is not paying the road tax on it. if its more than that its a rip off.

 

[Regcabguy]

My buddy is an Operating Engineer for a large paving company here in SoCal. They have the contract for major freeway expansion projects here. They've stopped buying red diesel as of last week. He's running clear diesel now on his fueling truck. More people around here heading south for the $2. 25 Mexidiesel.

 

[PRout]

Just went to fill up with 100 gals of B99 here in L. A. ITS 4. 99/GALLON!! I thought bio was supposed to be the answer to big oil prices. . :-laf

Lucky I only needed 80 gallons, bought HALF bio and half ulsd. Still cost dang near 400 bones.

 

[Gary - K7GLD]

I'd love to run my 50 gallon in-bed tank dry, then fill it with B100 while over in Ontario Oregon on a visit to Payette to visit with my dad - then pump it into a regular 50 gallon drum to mix a couple of gallons at a time with ULSD for the lubricity, and then stop buying 2-stroke oil or PS stuff.

 

[PRout]

Exactly! I've been trying to keep at least 10-20% mix of bio in there at all times. The truck LOVES the stuff. (smoother, bla bla bla) funny thing is, when its at 99% the tach at idle almost appears to be stuck. Very smooth, but with ulsd it almost never does that. But that has been the scheme Ive tried using in the past as well. Aux is the bio and mix a little in at a time. This time it was put some in here, and some in there - now STOP! this stuff is 5 bucks a gallon. Then go down to the port of L. B. and fill up the rest at 4. 49 with sandpaper fuel.

If you can find "good" bio for a reasonable price, Id say Buy all you can hold. .

 

[PRout]

Sorry for hijacking you guys' thread, just couldnt resist the opportunity. .

Its no wonder all of our produce is getting more expensive. .

 

[Coalsmoke]

"Sandpaper fuel", I love it!

 

[MHammond]

Sorry for hijacking you guys' thread, just couldnt resist the opportunity. .



Its no wonder all of our produce is getting more expensive. .

In the long run we will pay one way or the other

 

[grasmo]

The problem that was very elusive is the bulk guys are . 50 cents per gallon less but after they add sales tax the price almost negates itself. The fuel you buy at the convenience stores has the sales tax included at the pump,as well as road tax. The diesel here in Tallahassee, Florida went up . 25 per gal. Saturday night. Tell me this why does a quart of oil not cost more than double what it cost 2 years ago. There is something very crooked going on here.

 

[grasmo]

There has to be someway to turn used tires into fuel.

 

[WMoroni]

I didn't think you had to pay sales tax on ag fuel. I'm pretty sure I'm not. Ag fuel has always been about $0. 40 cheaper regardless of price, which would be the taxes paid on road fuel. Fortunately fuel is flat taxed or just what we would be paying.

 

[grasmo]

thats what I'm saying For a long time I was so happy to see a . 50 per gal. savings I did not realize I was paying sales tax (Florida/Leon County)and after discovering this I asked my bulk guys about it and they said unless I am resaling the fuel I have to pay the taxat point of sale. So ,I really do not want to try to save that tax and wind up reporting sales tax and all that goes with that. Check real close, you are probably paying sales tax and have not noticed.

 

[Jeff Knight]

The place closed where I used to get my offroad diesel. They would ask me what it was for. If it was for home heating there was no sales tax but if I was using it for my tractor they charged me sales tax.



Jeff

 

[jgillott]

I purchased some for our tractors yesterday at $3. 889/gal. Pump diesel is at $4. 69. I'm assuming there wasn't any sales tax included.

 

[Cattletrkr]

No sales tax in MN (on fuel). Same break as ever. $0. 449 iirc.

 

[jimnance]

We irrigate using a diesel pump. Bought off road for it last weekend and paid $3. 95/gallon. The pump price for road diesel was $4. 64 at the time.

 

[grasmo]

Jimnance ... hook up that irrigation pump with a couple a thousand miles of pipe and send me some of that stuff!

 

[jimnance]

It pumps about 900 GPM. Let's see, if you need 30 gallons and I'm pumping 15 gallons/second I'd better be pretty quick on the trigger.