A fuel invoice looks simple until you try to verify it. Packed into a few lines are two gallon figures, a stack of taxes, a freight charge, and fees, each of which can be right or wrong. Knowing how to read one means you can check it and understand what you actually paid. Take it line by line.
A sample invoice
Rates below are illustrative and the state lines vary by state, but a typical 8,500-gallon gasoline load reads something like this:
| Line | Qty / rate | Amount |
|---|---|---|
| Unleaded 87, gross gallons | 8,500 gal | |
| Net gallons (corrected to 60°F) | 8,449 gal | |
| Product, net basis | $2.4500/gal | $20,700.05 |
| Freight | $0.0450/gal | $380.21 |
| Federal excise tax | $0.1830/gal | $1,546.17 |
| Federal LUST fee | $0.0010/gal | $8.45 |
| State motor fuel tax (example rate) | $0.3000/gal | $2,534.70 |
| State inspection / environmental fees | varies by state | |
| Invoice total | $25,169.58 |
Three things to notice. The product is billed on net gallons, 51 fewer than gross, which matters at two dollars and change per gallon. The federal lines add to 18.4 cents: the 18.3-cent excise plus the 0.1-cent Leaking Underground Storage Tank (LUST) fee. And the state layer carries its own names and rates, such as inspection fees, environmental assurance fees, and oil spill fees, each small per gallon and real money per load.
The gallons
A fuel invoice usually shows the product, grade, and gallons, often both gross and net. Gross is the metered volume; net corrects it to the industry-standard 60°F, since fuel expands when warm and contracts when cold. Which basis you are billed on changes your cost, so confirming it is the first check. Match the gallons against what you received.
The taxes
Several taxes can appear: federal excise tax, state fuel tax, and sometimes additional state or local fees and environmental charges. They may be itemized or rolled into the price. Knowing which apply, from the federal excise to the state layer, lets you verify the invoice and your true cost.
Freight and fees
If the fuel was delivered, freight and any surcharge may be billed as separate lines or built into a delivered price. Small environmental and inspection fees can appear too. These are easy to overlook, so they are worth a glance on every invoice.
How to check it
Confirm the product and gallons, check the basis and price, verify the taxes and fees for the jurisdiction, and make sure freight matches the agreement. The most reliable check is comparing the invoice against the bill of lading, since the invoice should trace straight back to it. That match is tedious by hand, which is why FastDragon Fuel Jobber builds the invoice from the BOL itself (see BOL to invoice) and flags any line that does not line up.
What people ask
Can net gallons be higher than gross gallons?
Yes. Fuel is densest when cold, and the temperature correction adds volume when product comes off the truck below the 60-degree standard. Winter loads in northern states often show net above gross. Whether you pay on gross or net comes from your supply contract, and over a year of loads the difference adds up.
What is the LUST fee on a fuel invoice?
LUST stands for Leaking Underground Storage Tank. It is a federal fee of 0.1 cents per gallon that funds cleanup of leaking fuel tank sites, charged on top of the 18.3-cent federal gasoline excise. It often gets its own line because some otherwise tax-exempt sales, like dyed diesel, still owe it.
What should I do if a fuel invoice does not match the BOL?
Flag it before you pay. The common culprits are a price pulled from the wrong date or terminal, taxes applied for the wrong jurisdiction, and a gross-versus-net mix-up. Send the supplier the BOL number and the disputed line; most will issue a corrected invoice or a credit memo rather than argue over a documented load.
Who pays the excise tax on a fuel load, the jobber or the station?
Federal excise is generally collected when fuel breaks bulk at the terminal rack, so it is baked into the invoice the buyer pays. States vary: some tax at the rack, others at the distributor level, so the same load can carry different tax lines depending on where it lands. The invoice shows who was charged what.