As fuel prices rise, people want to know more about how the whole fuel industry works. The purpose of this web page, and associated links to other pages, is to provide a "one-stop shop" of information that will, hopefully, prove to be useful.
The price of fuel is driven by its cost. The base cost of crude oil (used to make gasoline, diesel, kerosene, etc.) is determined by the world's oil-exporting nations, particularly the Organization of the Petroleum Exporting Countries (OPEC). The amount of crude oil these countries produce determines the price of a barrel of oil. The cost is further affected by the amount of fuel demanded worldwide, and the amount of fuel available. The costs of refining, distributing and marketing, as well as Federal taxes, are added to the cost before the product even reaches Delaware. State taxes (which are used exclusively to fund highway construction and maintenance, and have not been raised in over twelve years) and necessary operational costs of the retail station operators are added. In this cost structure, the only action available to the State of Delaware is to reduce the amount of fuel excise taxes, which would have a damaging effect on the Department of Transportation's ability to complete roadway construction and maintenance.
The rising price of gas has left Delaware gas stations struggling to pay credit card transaction fees. As a result, many stations are offering discounts to customers who pay with cash.
The practice of charging two prices-one for cash and one for credit-is known as "dual pricing."
Delaware retail stations are not prohibited from charging whatever price they choose. However, motor fuel retailers that post highly visible signs must insure that the price being displayed on those signs equals what is being charged at the time fuel is being dispensed from the pump.
There is a fundamental difference between a credit card and a debit card. When a debit card is used to make a purchase, it's just like using cash. The account that is attached to the debit card, in most cases a checking account, is automatically debited when the debit card is used. The cost of the purchase is deducted from the funds in that account.
A credit card utilizes funds provided by the issuer of the credit card, usually a banking institution. In effect, it is an agreement to pay back the money "borrowed" to make purchases. In addition, interest is assessed on the money "loaned" at the rate agreed to when the credit card account was opened. This is known as the annual percentage rate (APR).
At the gas pump, however, a debit card is treated like a credit card. Merchants have to pay a fee for the convenience of a debit card or credit card transaction; most debit cards carry a Visa or Master Card logo and are processed using those networks. While debit cards typically charge less of a transaction processing fee than a credit card, it is still a fee that is borne by the retailer.
There are three primary agencies that regulate retail stations in Delaware.
The Department of Transportation Office of Retail Gasoline Sales is responsible for the licensing of all Delaware retail stations, and verifying that motor fuels delivered to those stations meet fuel quality specifications. In addition, this Office performs compliance visits at all stations, and conducts fuel testing.
The Department of Agriculture Weights and Measures Section performs inspection and testing procedures at Delaware retail stations. These procedures are designed to ensure the accuracy of all fuel purchase transactions through the gas pumps operated by Delaware retail stations.
The Department of Natural Resources and Environmental Control Tank Management Branch is responsible for protecting, preserving and enhancing the environmental quality of the water, air, and land of the State. The Tank Management Branch provides stringent control of the installation, operation, retrofitting and abandonment of Underground and Aboveground Storage Tanks to prevent leaks, and insures that Delaware retail station operators comply with storage tank regulations.
Compare the price on the pump with the roadside advertisement to ensure they are the same.
Make sure the pump's dial resets to all zeros before you start to pump gas. If the numbers jump at all, reset the dispenser.
Check to see that the price per gallon remains the same throughout the pumping process. If the price per gallon changes or the numbers appear to "skip", black out, or advance so rapidly that you can not read them, this could be an indication of pump malfunction.
When done pumping the gasoline, check the price computation to make sure it is correct. Remember pump prices round up to the nearest whole cent.
Check the vehicle gas gauge before and after filling up to ensure the new reading corresponds with the amount of gas purchased. Remember gasoline gauges, gasoline cans and tank sizes vary and the sizes are approximate because they are made to allow for product expansion.
Make sure the meter stops running when you stop the pump.
When paying for gas, always go by the price on the pump even if the cashier's record is different.
Always get a receipt even when paying by cash. The receipt is your proof of purchase should any problems arise after your purchase. Check to be sure you have been charged the correct amount on your receipt.
Check your owner's manual for octane recommendations and purchase the lowest octane gasoline your vehicle uses without your engine pinging or knocking. Once you know your vehicle's octane level, use higher octane only under stressful driving conditions such as pulling heavy trailers or boats.
There are websites and news articles popping up every day about how to save money at the pump, or how to find the cheapest price for fuel. The following links are from credible, knowledgeable sources that you may find interesting.
Web Sites
DelawareGasPrices.com - Powered by GasBuddy.com, this site provides current prices of retail stations throughout Delaware.