Who pockets the marina fuel profit?

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.

 

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...

 

But as to who pockets the profit? The marina owners of cource!

 

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.

 

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

 

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.

Jaybeaux

 

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.

 

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.

 

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.

 

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.

 

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?

 

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

 

For what SH charges for slips, they should give you free fuel.

 

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.

 

All Safe Harbor marina's?

 

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.

 

Here in the People's Republik of Kalifornia, prices never come down.