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Old 12-28-2006, 07:01 PM
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justinperkins justinperkins is offline
I ♥ German Cars
 
Join Date: Sep 2006
Location: Austin
Posts: 1,312
Biodiesel Prices and Expected Retail Markups

It's recently came to my attention that my local retail outlet for B100 typically charges a 25¢ - 35¢ "handling fee". So if I go directly to Austin BioFuels I can get fuel for $2.65/gallon, but at my closest retail store (who shall remain nameless) is currently charging $2.89/gallon but I have paid as high as $3.10/gallon in recent months.

To me it seems weird to charge that much of a premium just to collect peoples money. The fuel is delivered for free, the pumps and tanks are provided by ABF for free so there is literally zero investment on the end of the retailer. They just have to be open and have a 120V plug for the pump.

I know that Houston BioFuels is currently charging $2.40/gallon at their pumps, so just knowing that I am spending 50¢/gallon just because I live in Austin instead of Houston really irks me.

What do you guys think, is charging a 25¢-40¢ handling fee acceptable? Does anyone know what the typical markup the dinodiesel receives from the retailer? I was expecting the profit margin to be more in the area of 05¢-10¢ for the retailer.

How can you expect alternative fuels such as biodiesel to catch on when the retailer is taking advantage of their customers like that?
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1987 300TD, 1987 300TD
2008 R32, 2000 Passat Wagon
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