What if we could help you save $20, $30, $50, or even more when you purchase fuel? The method to save $1000's each year on your fuel purchases is straightforward! This will instantly become your "go-to" tool when you are shopping for the cheapest fuel prices. You can bet the biggest, and the most successful companies already know and use this secret knowledge, so what are you waiting for? We have provided screenshots of our app's calculators at the bottom of this page.
- Lease Operators
- Owner Operators
- Motor Carriers
- Hot Shots
- Box Trucks
- Dispatchers
SEE VIDEO DEMOs Screen recordings of the app in action here RAW FUeL 2.0 DEMOs
Anyone who purchases diesel across various state lines and is subject to IFTA tax will love using this tool, and this works for both the United States and Canada. RAW FUeL 2.0 even performs the monetary currency conversion for you when you convert US dollars per gallon to Canadian liters per gallon and vice versa, using an exchange rate that is updated daily!
Shopping for the best fuel prices is simple enough when you are comparing prices in the same state. Unfortunately due to IFTA tax, things are not as they appear when comparing prices across state lines. When we say prices, we are referring to whatever your actual pump price will be after any discounts you may receive through your fuel card provider or discount provider. The problem comes after you are comparing your pump prices because those prices are very misleading when shopping across state lines.
To understand the problem you are facing when you are shown your actual pump price, you must first understand how IFTA works. Each state sets its own fuel tax rate, and each state has a different amount of set tax per gallon of fuel. Two states are less than 20 cents per gallon, but other states are over 70 cents per gallon and one state is over $1.00 per gallon. The reason the tax is handled by IFTA is that each state wants its respective share of the tax money you pay at the pump. The only way to do this is for the tax you pay each quarter in all states to be lumped together, and then the amount of fuel you burned in each state for that quarter is calculated and distributed to the appropriate states in the appropriate amounts. The first thing that is imperative to understand is that your IFTA tax for any given quarter is determined by only four basic factors:
- How many miles your report is for that quarter.
- How many gallons of fuel you purchased in that quarter.
- How many miles you report in each state.
- How much IFTA fuel tax there is per gallon of fuel for each respective state.
Take a look at the actual method for calculating IFTA tax. Total miles for the quarter is divided by how many gallons of fuel you bought for the quarter to get your average MPG. Then the miles you ran in each state are divided by your average MPG to determine how many gallons you actually burned in each state. The gallons you burned in each state are then multiplied by the fuel tax per gallon for each state. The result is the amount of fuel tax you owe each state for that quarter. It is important to take notice that we have not mentioned anything about which state you bought fuel in for the quarter, but the question is why? Because it doesn't make any difference at this point. You now owe the total IFTA tax regardless of which states you purchased the fuel. The reason we are pointing this out and making note of it is because we want you to fully grasp this concept.
You can now add up all the gallons of fuel you purchased in each state and multiply the gallons purchased in that state. You will undoubtedly see that there are some states where you bought no fuel and some states where you bought more fuel than you burned. The total amount you have paid at the pump in fuel tax is added up, and computed against the total amount you owe in fuel tax. You will end up either still owing more tax or getting a refund of what you overpaid. Another thing to understand fully is that the goal is NOT to get a refund or have to pay more, nor is the goal to break even. Please read that again!
This is being explained to you in this way so that you understand that no matter what state you buy your fuel in, you will end up at the end of each quarter paying exactly the same in IFTA tax whether you pay it at the pump when you fuel, or when you file your quarterly IFTA tax return. Since this fact makes the fuel tax irrelevant when shopping for the best fuel prices, then the only way to get an accurate picture of your actual fuel costs is to remove the fuel tax from each state and compare what is known as raw fuel costs. Raw fuel is the pump price you are going to be paying minus the IFTA fuel tax for the state where the fuel is purchased.
Let us say for example you are in Philadelphia, PA and you are heading to Wheeling WV. You have the option of fueling in PA, or WV. You see that your cheapest fuel in PA is $4.79 but in WV your cheapest fuel is $4.56. The natural instinct would be to fuel in WV since it is 23 cents per gallon cheaper. BUT, are you sure about that? PA has a very high IFTA tax, but WV is much lower. This is the result if you look at raw fuel cost.
PA - pump = $4.79 raw = $4.049
WV - pump = $4.56 raw = $4.203
You only thought you would save 23 cents per gallon by fueling in WV. HOWEVER, in reality, you would be paying 15.4 cents per gallon more for your fuel. Now let's say you are taking on 100 gallons of fuel, that means you just saved $15.40 by buying it in PA!!! We have included a screenshot of our app in action for this example, please see below.
Our RAW FUeL 2.0 app is the only tool of its kind that allows you to put in any diesel price in any state and instantly compare it to prices in other states. We update each state tax rate each quarter helping to ensure accurate results for you. There are 2 states that also have an extra fuel surcharge added as a separate line item in their IFTA tax calculation. We invite you to check out the functions of our app below which include the US to Canadian and Canadian to US conversions into their respective volumes and currencies.
By downloading and using our RAW FUeL 2.0 application you are agreeing to the following legal agreements, so please review them and feel free to reach out to us with any questions or concerns.
RAW FUeL 2.0 PRIVACY POLICY
RAW FUeL 2.0 TERMS AND CONDITIONS
RAW FUeL 2.0 END USER LICENSE AGREEMENT
RAW FUeL 2.0 DISCLAIMER
SEE VIDEO DEMO Screen recordings of the app in action here RAW FUeL 2.0 DEMOs
