buying gasoline in bulk

Discussion in 'General Science & Technology' started by DRZion, Dec 14, 2011.

Thread Status:
Not open for further replies.
  1. DRZion Theoretical Experimentalist Valued Senior Member

    Messages:
    1,046
    An idea just struck me - how come noone buys gasoline in bulk?

    At first though, I thought its the same reason no one buys food in bulk
    - not everyone has a huge freezer, and does not like this initial cost
    - not everyone wants to spend so much on food at a time as to avoid planning out their spending
    - not all food is good when frozen
    - not everyone considers the idea seriously

    So, I think that the same may apply to gasoline, in all four categories. Not everyone can store 3000 gallons of fuel. But really, its easier than storing frozen food since it doesn't have to be frozen. It doesn't go bad.

    Still, its expensive to spend so much at a time. But could it pay off?
    Does anyone know the cost of gasoline at a wholesaler? Is it even possible for an ordinary citizen to buy so much gasoline?
     
  2. Google AdSense Guest Advertisement



    to hide all adverts.
  3. Syzygys As a mother, I am telling you Valued Senior Member

    Messages:
    12,671
    What if gasprices drop? If you want to play oilprices, just play the futures market....
     
  4. Google AdSense Guest Advertisement



    to hide all adverts.
  5. Michael 歌舞伎 Valued Senior Member

    Messages:
    20,285
    You can, if you have a tank. My friend does buy gasoline in bulk, they have their own pump right in their driveway. It's part of their farm.
     
  6. Google AdSense Guest Advertisement



    to hide all adverts.
  7. billvon Valued Senior Member

    Messages:
    21,634
    A great many people do. Gasoline sellers do sometimes buy physical gasoline, but far more often people buy gasoline futures, which are contracts that allows one to buy gasoline at a fixed price in (say) 20 years. If you are certain that gasoline will go up, then buy a million dollars worth of futures at $4 a gallon, and you will be able to instantly resell the gas (or even the future) at $8 a gallon, doubling your money.

    Of course if it drops a bit you're hosed.
     
  8. mathman Valued Senior Member

    Messages:
    2,002
    Stored gasoline can deteriorate in a matter of months.
     
  9. DRZion Theoretical Experimentalist Valued Senior Member

    Messages:
    1,046
    Thats too complicated though. You need a broker, you need to learn all the rules, etc etc etc. I just want a discount for buying 2,000$ dollars of gas at a time, like this :

    Does your friend gets a discount? It seems like he could make a profit by just selling the gasoline to his friends - everyone needs gas, so its not like it would go to waste. And if they can save money by buying from someone they know, I don't see why not..

    Really? What happens to it?
     
  10. joepistole Deacon Blues Valued Senior Member

    Messages:
    22,910
    If you live in an urban area local ordinances may prevent you from keeping a gasoline tank on your property. And then there are the EPA rules to consider, if you live in The United States.

    Most farmers buy their gasoline in bulk. But if you are an urban dweller, storage in and of itself is going to be expensive. And then you have to deal with the problems of gasoline storage. Gasoline does go stale in storage. It has a shelf life. So you would be better served by investing the money in a good master oil and gas limited partnership.
     
    Last edited: Dec 15, 2011
  11. Jim S Registered Senior Member

    Messages:
    80
    There's a lot of problems with buying and storing gasoline. Underground tanks are a big no-no today. If you have a leak and the state finds out about it, you're done for. Gasoline for farm use can be bought without paying road tax, but if they find out you're putting it in your car you're in trouble. If you pay the road tax you can use it for what ever you want, but they don't give you much of a discount anyway - probably none. They have to deliver it and that costs them money. Another problem is neighbor kids stealing it. I know about that too.
     
  12. Asguard Kiss my dark side Valued Senior Member

    Messages:
    23,049
    I was going to say the same as Michael, my grandparents farm had its own bowser. It was for diesel to run the tractor rather than petrol for there car though, as for the price I have no idea what they paid for it though
     
  13. Syzygys As a mother, I am telling you Valued Senior Member

    Messages:
    12,671
    Well, in bulk, you have to pay for delivery.

    Futures are simple and it is rather easy to open an account. Also if price goes up a lot, people might want to steal it. I saw video of people stealing it from farm tanks....
     
  14. KilljoyKlown Whatever Valued Senior Member

    Messages:
    6,493
    Whatever gave you the idea it doesn't go bad? I might only use 30 gal/month which would be about 350 gal/year. I haven't seen any comments that would recommend keeping any gasoline longer than a year. I guess you've never got a tank of bad gas before? Not a very good experience. That sometimes happens at gas stations with old storage tanks and you fill up when they are low on gas, so you are getting the dregs at the bottom of the tank.
     
  15. DRZion Theoretical Experimentalist Valued Senior Member

    Messages:
    1,046
    Road tax? That sounds like The Man making sure no one else makes money on gasoline. Although I guess farmers may get subsidized gas.

    So maybe a tank-on-wheels to reduce delivery costs. And since it mobile you can deliver it to people, or at least keep it outside of town for legal issues.

    I really don't know, I had the notion that it was like oil - basically a mineral.
    350 gal/year is probably not worth getting a tank for. But, say, you and ten friends start up a gas fund, then you need 3500 gallons a year. That is four refills a year, gas won't go bad in that short of a time will it?

    Please Register or Log in to view the hidden image!



    The whole idea may be groundless, but it seems that they have to be charging extra at the pump, otherwise they wouldn't be making any money!
     
  16. Syzygys As a mother, I am telling you Valued Senior Member

    Messages:
    12,671
    Actually, the profit on gas is rather small. Most gas stations are making big profits on the merchandise, like soda and caffe, and they use selling gas just to get you in....
     
  17. chimpkin C'mon, get happy! Registered Senior Member

    Messages:
    4,416
    I thought about buying gasoline in winter when it is cheaper, but I think it goes bad in storage, in like a couple of months or so. Volatile.
     
  18. Cifo Day destroys the night, Registered Senior Member

    Messages:
    685
    Yeah, gasoline is way too volatile (chemically, politically, etc). I understand that you can put a blow torch to some spilled diesel/home fuel, and it may smoke but won't ignite — but don't you dare try it with gasoline!

    But for safety reasons, I don't recommend trying it with diesel/home fuel either.
     
  19. cosmictraveler Be kind to yourself always. Valued Senior Member

    Messages:
    33,264
    Don't forget that anything enclosed in a tank that's not completly full of gas will collect water in it due to condensation. Gas does go bad:

    The shelf life of gasoline depends on the type of gas and the storage conditions and can range from a couple months to a couple years. One wild card is that gas you buy at the pump may already have been in storage for anywhere from days to months.

    What makes gas go stale? Usually the first thing that happens is the lighter chemicals in it evaporate, leaving behind a heavier, less peppy product. Gasoline is an ideal motor vehicle fuel partly because it vaporizes readily to form a combustible mix with air. If it sits unused, however, its more volatile components waft away, leading to poorer engine performance. It's hard to tell how much punch your gas has lost without scientific testing, but don't worry — though your car might start a little harder, it'll still run (assuming it ran before), and there's little risk in burning the fuel if this is all that's gone wrong.

    The second cause of bad gas is oxidation — some of the hydrocarbons in the fuel react with oxygen to produce new compounds, almost all of them worse than what you started with. When oxidation becomes a problem, you'll know it without lab tests — the gasoline gives off a sour odor. If you pour some into a glass container, you'll see it's turned dark, and you might find small, solid particles of gum. Using oxidized gasoline is a bad idea, since the gum can clog your fuel filter, create deposits in your fuel system (especially the injectors), and generally hurt performance.

    Finally there's the problem of contamination. Water, which can cause gas-line freezing and other problems, is the main culprit — it usually gets into stored gas via condensation as temperatures fluctuate. If the gas is relatively fresh, a "fuel dryer" additive (basically isopropyl alcohol) can help by combining with the water to make a burnable mix that can be run through the system. Another potential problem caused by water is bacteria, although that's not nearly as common. Gas contaminated with dirt or rust is a no go, as the crud will foul your engine.

    http://www.straightdope.com/columns/read/2668/why-does-gasoline-go-stale-so-quickly
     
Thread Status:
Not open for further replies.

Share This Page