Gross vs. Net Gallons
Understanding the Differences in Fuel Billing
Many factors affect the rise and fall of fuel pricing including global supply, demand, and geopolitics. One of the ones that is often forgotten is fluctuating temperatures.
A few degrees in fluctuation can significantly affect how much fuel is actually delivered compared to much is paid for. This difference is known as gross vs net in the fueling industry and can have serious impacts for suppliers and consumers.
What happens to fuel with temperature changes?
- Fuel expands when warm and contracts when cold
- Industry measures all volumes with 60°F as the standard
Gross: the volume of fuel measured at its current temperature in the storage facility that is loaded onto the truck
- Usually northern states bill gross gallons
Net: the volume of the fuel that the gross measurement would be if it was cooled/warmed to 60°F
- Usually southern states bill net gallons
When we talk about fuel volume changes due to temperature, we usually refer to underground storage tanks and here’s why:
- UST’s are temperature insulated by soil so fuel entering from a truck (at outside temp) will either warm up or cool down over time as it adjusts to the underground environment
- This temperature change is what causes the fuel volume to expand or contract after delivery. This means suppliers may deliver more or less than expected based on gross gallons.
What You Can Do
- Know your region’s billing method
- Track seasonal trends in your deliveries
- Work with a partner who understands the details
