Who pockets the marina fuel profit?

Discussion in 'General Discussion' started by ZZ13, Feb 3, 2023.

  1. ZZ13

    ZZ13 Well-Known Member

    Nov 25, 2009
    Lady's Island, SC
    2001 400 Sedan Bridge
    Cummins 450 Diamond
    Was curious about this. Off road diesel at the pump at the gas station down the street is $4.39 a gallon. Diesel at our marina not far from there is $6.09 a gallon. Who gets to keep the $1.70 a gallon? It’s certainly not me.
  2. dtfeld

    dtfeld Water Contrails GOLD Sponsor

    Jun 5, 2016
    Milton, GA
    410 Sundancer
    12" Axiom and 9" Axiom+ MFD
    Cat 3126 V-Drives
    At our local marina, price doesn't change very fast, as they set the price when the they filled their tank. Could have been much higher when they did buy it, so not apples to apples price comparison. I'm pretty sure were on last years price still.

    As high as it is, I'm not lugging 200 gallons of nasty smelly diesel fuel to the dock , so I guess there is some convenience fee built in as well.
    Tripsdad and Nater Potater like this.
  3. Stee6043

    Stee6043 Well-Known Member

    Jun 1, 2015
    West Michigan
    1997 Sundancer 400
    7.4L Gassers
    On-water vs on-road tax rates on fuel tend to vary by state and can (dramatically) impact what we pay.

    More broadly though, I'm not sure it's safe to assume a gas station and a marina are paying the same wholesale rates for fuels...
    Tripsdad and Nater Potater like this.
  4. JimG

    JimG Well-Known Member

    Nov 4, 2008
    Southern WV
    2007 310 DA
    Kohler 5ECD
    Twin 350 Mags
    Raw Water Cooled
    But as to who pockets the profit? The marina owners of cource!
    Nater Potater and dtfeld like this.
  5. Jus Cruisin

    Jus Cruisin Well-Known Member

    Oct 6, 2021
    Lake St Clair - MI (Belle Maer Harbor)
    2004 390 DA
    The owner of the gas dock at ours. They are completely independent of the marina.

    There's no way a semi tanker can get to the gas dock easily so a smaller straight tanker like you see hauling home heating fuel. So there's likely a significant higher delivery charge from the depot.
    Nater Potater likes this.
  6. TTG

    TTG Member

    Dec 24, 2019
    2003 360DA
    Mastercraft Pro Star (ski boat)
    Checkmate 185 (river boat)
    Twin 8.1 Inboards

    What makes you think they pay the same (wholesale)?
  7. Jaybeaux

    Jaybeaux Well-Known Member SILVER Sponsor

    Jan 3, 2016
    Upper Potomac River
    2006 Sea Ray 48
    Naught On Call
    Cummins QSC-540s with V-Drives
    11 KW Onan Genset
    It stands to reason as the fuel is the same in both cases, differing only by color. Diesel used "off road" is dyed red. The diesel fuel (No. 2 Fuel) when it leaves the refinery and enters the pipeline doesn't know if it is going to end up in an 18 wheeler on the road, a Sea Ray 48 on the water, or in a home furnace. I would suspect that it all goes into the same tank at the terminal. It's only when the truck shows up at the terminal to fill up to make a delivery that the diesel knows where it is going by virture of dye.

    Forgot the link: https://www.reederdistributors.com/...d diesel, also known,, cost, and intended use.

  8. Woody

    Woody Well-Known Member

    Nov 20, 2007
    N. Wisconsin/Lk Superior
    2005 420DA
    Cummins 6CTA8.3
    Between the bulk terminals and gas stations/marinas are some variables like volume, trucking, and 'convenience'. I know a couple years ago my marina really got into the 'convenience' part, they weren't bashful about using as an excuse for their crazy fuel prices either. A couple of us diesel guys squawked and they dropped the price 50 cents a gallon but were still way high.
    Nater Potater likes this.
  9. Wanderer 290

    Wanderer 290 Well-Known Member

    Jul 1, 2019
    Traverse City
    01 sea ray 290 sundancer
    Twin 5.7 b3’s
    Sulphur content is the primary difference between hwy and off road/ag/marine diesel.
    Marine gas typically has additives as does av gas that are not found in auto gas.
  10. FootballFan

    FootballFan Well-Known Member

    Jun 20, 2012
    Marquis 59
    MTU Series 60
    My experience with off road diesel is from years around agriculture. I just assumed that off road for boats was more or less like getting fuel for tractors and combines.

    In the past there was no difference in the diesel. The dye for off road was dumped in at the bulk staging location.

    The diesel I buy now for the boat has additives - not sure if that is the same for over the road diesel or not.

    In todays world with the changing environmental regulations often at a state level, I have no idea about the difference in off road vs road diesel.

    I do know if you put off road in a over the road diesel, it does stain and leave evidence that you were burning off road diesel. If found there was taxes and a hefty fine to pay.

    Years ago when diesel pickups were starting to show up a lot of farmers thought they could fill the pickup at the tractor tank. We would be at farm auctions. Department of revenue officers would pull in and start going pickup to pickup dipping a stick in the fuel tank to see if it was dyed.
    Nater Potater likes this.
  11. bahamabreisus

    bahamabreisus Well-Known Member

    Oct 25, 2007
    Hampstead NC
    370 dancer, previous 500,420,390,300 dancers
    454 CI MPI
    My understanding is the local distributer has a cost, lets say $1.00 per gallon. He sells a 1000 gals a day to the local Circle K, he sells a 1000 gallons a week to the marina. Who is going to get the better price ? So he makes .25 per gallon to Circle K and .75 to the marina. The marina has to markup fuel more than Circle K because the cost of insurance to pump over water is quite high compared to Circle K in a parking lot. These numbers are for just for example.
  12. bobeast

    bobeast Dance the Tide SILVER Sponsor

    Oct 22, 2017
    Isleton, CA
    2002 310DA
    350 MPI w/V-drives
    I think turnover is a huge factor. A gas station with a high turnover can be expected to track the area average pretty closely. Marina tanks, filled far less often will see jumps from fill to fill. Isn't it funny though that that those jumps always seem to be in the upward direction?
    Nater Potater and northshore like this.
  13. Blueone

    Blueone Well-Known Member SILVER Sponsor

    Jan 24, 2007
    Lake Erie, Ohio
    2004 420 Sundancer
    Cummins 6CTA 450's
    I was up in Canada over Christmas … I have a lot of family that own farms…. They all own diesel pickups…. Diesel is so expensive they are all using dye diesel…. The police are so bad they are pulling you over for no other reason than to dip your tank…… the impounding and taxes and fines are astronomical……. Got to pay for that free health care some how
    Nater Potater likes this.
  14. Almightys

    Almightys Super Moderator Staff Member

    Jun 15, 2015
    Warren, MI
    1995 500 DA with diesel loving Detroit’s
    (SOLD)1992 Sundancer 330
    6v92 Detroit Diesel
    Safe harbor is supposed to be offering fuel at their cost this year. Will be interesting to see how that is calculated lol
  15. Pirate Lady

    Pirate Lady Well-Known Member

    Jun 2, 2020
    Chesapeake Bay, Middle River
    Sundancer 250 ‘91
    7.4 Bravo 1
    For what SH charges for slips, they should give you free fuel.
    Nater Potater and dtfeld like this.
  16. Flyer5

    Flyer5 Well-Known Member SILVER Sponsor

    Dec 2, 2022
    Finger Lakes NY
    1987 Sea Ray 410
    454 Crusaders
    It's capitalism. The marina has to determine how much profit per gallon it needs to cover their insurance costs, electricity and the simple cost of money. Also fuel storage registration fees. They need to charge as much as they can but stay competitive with surrounding marinas. If they are going to tie up 40- 50 thousand dollars for a month or longer they need to also make profit on that. If in the end it costs more to offer fuel at the dock than they profit the convenience will no longer continue. In the end it is not fair to assume the marina has the same overhead or cost/gal as the station down the street away from the water.
    Blueone likes this.
  17. techmitch

    techmitch Well-Known Member PLATINUM Sponsor

    May 1, 2008
    Chesapeake Bay, Middle River/Frog Mortar Creek MD.
    1999 270 DA
    Twin 4.3s W/Alpa I Gen II's
    All Safe Harbor marina's?
  18. TimW

    TimW Well-Known Member

    Jul 2, 2018
    Northwest Lower Michigan
    2003 260 Sundancer
    Tri-axle venture trailer
    F250 diesel truck
    350 MAG MPI
    It shouldn’t, and it doesn’t at mine.

    My price may well change every week when I get filled up, but whether it goes up or down is strictly a function of the price I’m charged by distributor.
    Nater Potater likes this.
  19. bobeast

    bobeast Dance the Tide SILVER Sponsor

    Oct 22, 2017
    Isleton, CA
    2002 310DA
    350 MPI w/V-drives
    Here in the People's Republik of Kalifornia, prices never come down.
    Nater Potater likes this.
  20. Almightys

    Almightys Super Moderator Staff Member

    Jun 15, 2015
    Warren, MI
    1995 500 DA with diesel loving Detroit’s
    (SOLD)1992 Sundancer 330
    6v92 Detroit Diesel
    Not sure, you would have to check the website on yours.

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