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How to Become a Diesel Fuel Jobber
A jobber is a kind of middleman between a fuel company and a retailer. The jobber will buy diesel from a refining company and sell it to retailers or directly to the end users. Starting up can be quite challenging but once you get through the license applications and find a market base, it can be a very profitable business.
Find a source of the diesel that you will transport and distribute. Various companies that provide bulk diesel include Shell, BP, and Exxon. The lower the price you pay for the diesel, the higher your profit margins when you sell. Then look for transport trucks for the diesel. Companies like Seneca have an online catalog of the trucks they are selling; depending on your budget, you can get a trailer or a mini trucker.
Apply for a distributor’s license. The application forms can be found at the Department of Revenue. For diesel, the application will fall under special fuels. In order to apply for the license, you are required to submit a surety bond of $1000 along with your application. You can also apply for a gasoline license, which enables you to purchase fuel tax-free. The application forms can also be found at the Department of Revenue.
Apply for a transporter license. Any person who transports fuel is required to have a transporter's license. Your vehicles will have to be inspected to ensure they are suitable for transporting flammable substances such as diesel. The license fee is around $50. The license forms can be found at the Department of Revenue. Some states like Louisiana do not require you to submit a bond for a transporters license.
Market yourself. Call gas stations around your area and propose to supply them with diesel. Advertise online and in the local newspapers. Companies such as Shell usually appoint a distributor for their products; when they advertise for a distributor; you can apply for the position. In order to make a profit you have to supply in bulk because by buying the oil from the supplier companies and selling to the retailer you will only make a profit of about 2 cents per gallon. You therefore need to look for many retailers in order to make a large profit margin.
Join distributors associations such as the National Association of Shell Marketers for information on current trends and tax changes.
Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.