Evans Oil was experiencing annual product losses of an estimated 100,000 gallons, with no understanding of where the fuel losses were occurring, or how to stop them.
Meter Drift is a contributing source of variance in fueling systems that happens when components within the meter wear out overtime. As they wear the meters usually pump a slightly higher volume, frequently giving fuel away and eating into a fuel sites profits. If, instead, the meter drift results in less fuel being dispensed it could be exposing the gas station to fines for violating weights and measures standards.
Whether you are measuring inventory by dipping tanks or with an automatic tank gauge, the stick or probe measurements are only as good as the tank chart that you reference when calculating the ullage. While tank charts do not cause a loss of fuel, an inaccurate tank chart will affect inventory and delivery data collected and could contribute to masking actual fuel losses.
Insite360 Advanced Variance Analysis (AVA) is a managed service that monitors fuel sites to continuously reconcile inventory and deliveries, identify instances and sources of fuel variance, and provide actionable recommendations to reduce loss.
In our new E-book, learn about managing your fuel variances by detecting and reducing fuel loss in your fueling system. Receive tips from the Veeder-Root experts on making your fueling operation as profitable as possible and learn more about Veeder-Root's variance management solutions.
There are five primary sources of real fuel loss, and without the right measures in place to identify and prevent them, your business could be losing money without even knowing it.
Do you know what a lost gallon of fuel is really costing you? When even a single gallon of fuel is unaccounted for at the end of the day, more is at stake than the few dollars that gallon cost at wholesale. For example, if you lose a gallon of fuel that was purchased at $3 and has an average margin of 17 cents, you would have to sell over 17.5 more gallons of fuel just to make up the revenue lost. On a larger scale, the theft of 250 gallons of fuel would require the sale of an additional 4,375 gallons to break even.