QuikQ Refining Fuel Management

TRUCK STOP SOLUTIONS: Transaction Cost Analysis

Transaction Cost Analysis

The table below represents an increasing rate of return that you will have on your fuel margin by converting gallons purchased through the antiquated magnetic stripe method of today’s fuel cards versus the card-less Fuel Purchase System (FPS) solution. In effect, this illustrates that as the price of fuel increases, so does the margin differential between funded fuel cards and FPS.

Assumptions:
Carrier pays weekly

Diesel price at 2.50/gal Diesel price at 3.00/gal Diesel price at 3.50/gal Diesel price at 4.00/gal Diesel price at 4.50/gal Diesel price at 5.00/gal
Diesel Transaction (Gallons) 110 110 110 110 110 110
Price per gallon $2.50 $3.00 $3.50 $4.00 $4.50 $5.00
Fuel transaction total (example) $275 $330 $385 $440 $495 $550
Current Transaction fee 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
Current Total transaction fee $6.88 $8.25 $9.63 $11.00 $12.38 $13.75
             
Typical DFConnect fee $0.99 $0.99 $0.99 $0.99 $0.99 $0.99
Financing cost @ 25% APR $1.32 $1.59 $1.85 $2.12 $2.38 $2.64
Total alternative fee $2.31 $2.58 $2.84 $3.11 $3.37 $3.63
             
Savings $4.56 $5.67 $6.78 $7.89 $9.01 $10.12
Savings per gallon $0.04 $0.05 $0.06 $0.07 $0.08 $0.09