Topic: How to Gouge the Governemt when buying E85 Fuel

[Dan M]

I've gone back and forth with the Waite Park Minnesota SuperAmerca / Old JM Speedstop station on their e85 pricing and today the manager finally said why thier prices were so High..

because they have the Veterans Administration as well as other Government facilities in town

So while Coborns/Little Dukes and Cenex Station are at $2.17 a gallon range for E85  ..Super America is $2.52

[James48843]

I am not sure what you are saying Dan, but the whole 4% does not come back to GSA. Some of that stays with the credit card processor and with Wright Express itself. Card processor likely pulls off 5-10 cents per transaction plus 1/2 %. Wright likely keeps all but 1%?

I heard through the grapevine that Wright kicks back about 1/2 of one percent to GSA.   That was enough for GSA to gladly hand them the contract.  None of the other competitors was willing to kick back anything.  I don't know if this is true, but that's what I heard.

[James48843]

IF anyone is a station owner, I would be happy to be a consultant to you, and show you how to obtain the E85 business of federal government employees.  It's easier than you think. Takes a little bit of investigation work, and a couple personal contacts- but it works.     And once they find you, they will come to you for every tank. 

Any station owner- Shoot me a PM if you want to know how. 

thanks

[1outlaw]

I got  you now- I must have had too many cups of coffee today and my attention span is about 2 seconds

[Dan M]

Phil..the Va said SA was the only place that accepted "their" card..so they "had" to buy from SA.

I am assuming the Credit Card they are talking about is the GSA association with the "Wright Card " that James pointed out.

If that IS the card then we do have another E85 Station that accepts it..the First Fuel Bank ..so the VA was Bsing on that as well (that they "had" to use Super America)

I am not sure what you are saying Dan, but the whole 4% does not come back to GSA. Some of that stays with the credit card processor and with Wright Express itself. Card processor likely pulls off 5-10 cents per transaction plus 1/2 %. Wright likely keeps all but 1%?

[1outlaw]

I am not sure what you are saying Dan, but the whole 4% does not come back to GSA. Some of that stays with the credit card processor and with Wright Express itself. Card processor likely pulls off 5-10 cents per transaction plus 1/2 %. Wright likely keeps all but 1%?

[Dan M]

Thanks James..

So the First Fuel Bank in Saint Cloud does service the Wright Card .. http://www.firstfuelbank.com/charge/default.asp

Their E85 prices would be $2.39 ..which is still high considering Coborns is at $2.16  , Cenex and JM Speedstop at $2.29  but they would still save 13 cents a gallon .. thats $1300 saving for every 10,000 gallons...

Do they HAVE to use the Wright Express card?

Answer:   Yes.  That is the only way G-Cars can pay for fuel.

Why Wright Express?  Because they were the "low bidder" on the contract.   The contract required that whoever got the contract had to track mileage, and type of fuel, and report that back to GSA, by license plate number, and also, that 4% that they charge?  Part of that gets kicked back to the Agency that let the contract.

Float the government a loan?  Yep- in this case, that's what gas stations do.  Wright Express pays stations once per month, at the end of the month. 

[James48843]

Do they HAVE to use the Wright Express card?

Answer:   Yes.  That is the only way G-Cars can pay for fuel.

Why Wright Express?  Because they were the "low bidder" on the contract.   The contract required that whoever got the contract had to track mileage, and type of fuel, and report that back to GSA, by license plate number, and also, that 4% that they charge?  Part of that gets kicked back to the Agency that let the contract.

Float the government a loan?  Yep- in this case, that's what gas stations do.  Wright Express pays stations once per month, at the end of the month. 

[1outlaw]

Poor excuse though-- because they also turn away normal consumers who pay with 2 1/2 to 3% cost credit cards or cash. Normal credit card payments hit the retailer in 3 days. At $2 E85 the Wright Express card would then hit the retailer an extra 4 cents in processing and interest expense. Not only that but I am sure people do buy 30% margin or higher snacks at c-stores, not just use bathrooms

'Spose I should put up C-Stores instead of unattended

[Greengenes]

I accept both of those cards and see their use. However- I have run into problems with both cards not exempting the Post Office both state and federal taxes. On top of that both cards charge the retailer nearly 4% AND Wright Express only pays sometime after 2 weeks.

I don't suppose this is the rationale for Super America ( & others) to raise the price of their fuel then ??  I raise the price to offset the cost of floating a 2 week loan to the gummint ..

[1outlaw]

I accept both of those cards and see their use. However- I have run into problems with both cards not exempting the Post Office both state and federal taxes. On top of that both cards charge the retailer nearly 4% AND Wright Express only pays sometime after 2 weeks.

[Dan M]

James do they HAVE to use that Credit Card ?  Can they make fuel purchases any other way ?

The guy at the VA said something about Stations need to accept their card ..

Still- I see a lot of FFV's with red plates (State of WI) but the GSA ones are harder to pick out.

A US government plate looks like this:



The driver of a U.S. Government vehicle will be using a credit card for either Voyager (old contract), or Wright Expresshttp://www.wrightexpress.com/Accept/index.html (new contract).

[furball64801]

This hacks me too,  I would tell Stupid America stations I would not buy from them.   I am sure they would shake in there boots.    They have a pretty bad rep for being rip offs anyways.

[James48843]

Still- I see a lot of FFV's with red plates (State of WI) but the GSA ones are harder to pick out.

A US government plate looks like this:



The driver of a U.S. Government vehicle will be using a credit card for either Voyager (old contract), or Wright Expresshttp://www.wrightexpress.com/Accept/index.html (new contract).

[James48843]

... The waiver covers vehicles operated by the agency in a particular geographic area in which:

The alternative fuel required for use in the vehicle is not reasonably available to retail purchasers of the fuel as certified by the Secretary by the head of the agency.

There are no waivers that have been granted because of the cost of fuel.  That was intended in case E85 suddenly was several dollars more per gallon than gasoline.   As long as prices are competitive, then it is a requirement. 

Local E85 stations need to hook up with U.S. Postal Service, and then any other federal agency in their area, and let them know they are there, and they will have an automatic cliental for E85.

[Dan M]

Petroleum Use Reduction/Alternative Fuel Use Increase
The following Federal laws and regulations each contain fleet management, alternative fuel use, and petroleum reduction mandates. Federal agencies must comply with these, and all other, laws and regulations.

EISA 2007:

Directs Federal agencies to develop and implement a plan for Federal fleet conservation; DOE is also directed to establish interim milestones to assess annual agency progress.

Directs Federal agencies to install at least one renewable fuel pump at each Federal fleet fueling center by 2010.

Requires Federal agencies to achieve a 20% reduction in petroleum consumption by 2015 compared to a fiscal year 2005 baseline.

Requires Federal agencies to increase alternative fuel use 10% each year compared to a fiscal year 2005 baseline.

E.O. 13423:

Requires Federal agencies with 20 vehicles or more located in the U.S. to decrease petroleum consumption by 2% per year through fiscal year 2015 compared to a fiscal year 2005 baseline.

Requires Federal agencies to increase alternative fuel use by 10% each year compared to the previous year.

EPAct 2005 mandates that dual-fueled vehicles acquired pursuant to Section 701 shall be operated on alternative fuels unless the Secretary of Energy determines that an agency qualifies for a waiver. The waiver covers vehicles operated by the agency in a particular geographic area in which:

The alternative fuel required for use in the vehicle is not reasonably available to retail purchasers of the fuel as certified by the Secretary by the head of the agency.

The cost of the alternative fuel required for use in the vehicle is unreasonably more expensive compared to gasoline as certified by the Secretary by the head of the agency.

The Secretary shall monitor compliance by all such fleets and shall report annually to Congress on the extent to which the requirements are being achieved. The report shall include information on annual reductions achieved from the use of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels.


http://www1.eere.energy.gov/femp/regulations/requirements_by_subject.html#pur

I thought the GSA requirement to buy alt fuels included some price limit provision- something like it had to be within reason or was that more of a state deal?