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AMBT - Where to Buy Fuel

Before you figure out where to buy fuel, you need to know HOW to buy fuel! This is extremely important if you drive a commercial vehicle and are subject to IFTA filings.

Each state has a fuel tax rate. When you travel through each state, you are required to pay tax on fuel you consume in that state. It doesn't matter which state you travel through, you pay that state's tax rate, not your home state's tax rate. For example, in Illinois, you pay 34 cents for each gallon of fuel your burn. In Missouri, you pay 17 cents for each gallon of fuel your burn.

Basically, to determine where you should buy fuel, you need to subtract the state fuel tax from the pump price to determine which state has the best price. You should NOT compare the pump price between each state. For example:

State Pump Price Tax Rate Price w/o Tax
Illinois $3.049 $0.34 $2.709
Missouri $2.899 $0.17 $2.729

In the above example, Missouri's pump price is cheaper than Illinois'. HOWEVER, because of IFTA, Illinois' pump price before tax is cheaper than Missouri's. So in the above example, it is cheaper to buy fuel in Illinois rather than Missouri.

Now that you know HOW to buy fuel, you now can figure out WHERE to buy fuel. To learn which states to buy fuel in, check out Fuel Price Index. Look for the states you are traveling through and determine which state has the lower fuel price before tax. The Fuel Price Index sorts the average pump price minus state tax from cheapest to the most expensive.