IFTA & Pump Prices: What You Need To Know
It’s an easy trap to fall into. You see that fuel is 10¢ cheaper per gallon a few miles down the road, and you have enough in your tank to get you there. Sounds like a win/win. What you don’t realize is that to get that cheaper price, you are actually crossing into the next state over, where IFTA taxes are double that of the state that you are currently in.
That 10¢ discount that you are excited about actually turns out to be a significant loss once all of the dust has settled. So how do you avoid the trap? How can you ensure that you are getting the best rate possible every time you, or one of your drivers, pull up to the fuel island?
Tips To Reduce Fuel Costs
Reducing fuel costs is all about knowing which levers to pull and when to pull them. Admittedly numerous components impact fuel consumption and total fuel costs each year like tires, driving habits, and more. Some pieces are harder to predict, so we’ll focus on two that can easily be managed regardless of fleet size or budget.
Get To Know Your IFTA Rates
Remember the old G.I. Joe quote – “Knowing is half the battle.” The same is true for IFTA. When you have a clear understanding of how IFTA rates work and the rates in the states that you operate within, you can more accurately plan and predict annual fuel costs.
Yes, you might be able to stretch the fuel in your tank a little farther, but it may cost significantly more if the IFTA rate jumps from 18¢/gallon to 26¢/gallon when you choose to fuel up in Tennessee rather than Mississippi.
It might sound simple, but we are creatures of habit, and we all like to see immediate savings, like those associated with a slightly lower pump price. But being an owner is about seeing the bigger picture and playing the long game. Be a student of the game to give yourself the best chance to win.
Improve Visibility and Planning
Technology can be a great tool to help you get better fuel prices and there are certainly many different apps out there that can help. Most, however, are not designed and built for the trucking community. They are made for passenger vehicles that are not subject to IFTA taxes.
Tools like the ES Advantage mobile app are specifically designed to help improve visibility on fuel prices along your route, while also giving you detailed information on IFTA rates. The ability to have a quick comparison with all of the relevant data makes it easier to make the best decision for your fleet, regardless of which state or province you are operating in.
Rather than having to compare information from different sources or apps, it is all packaged together as a one-stop shop where you can see fuel discounts, pump prices, and how IFTA rates impact the value of that potential fuel purchase, making each dollar go further.
Even with technology at your fingertips, diligence is needed. Company drivers at a mega-carrier can get away with minimal planning. As an owner-operator or fleet owner, every decision impacts your bottom line. It might not seem like much, but over a year, each dollar adds up.
Make IFTA Easy With ES Advantage
Stacking the deck in your fleet’s favor is much easier than you might think. ES Advantage community members have access to industry-leading discounts for fuel, shop, tires, and more, as well as access to the technology to make planning your fuel stops more profitable.
To learn more about all of the advantages available, connect with our team at 888-566-9877 and get started today.
