A fuel jobber is a company that buys fuel in bulk from a refiner or fuel terminal and sells it to gas stations, convenience stores, and businesses that use a lot of fuel. The jobber sits in the middle of the fuel supply chain. They move fuel from the big suppliers down to the places that pump it or burn it.
What a fuel jobber does
A jobber handles the steps between the terminal and the customer. The main jobs are:
- Buy fuel in bulk at the terminal, often many thousands of gallons at a time.
- Arrange the haul, with their own trucks or a hired carrier.
- Sell and deliver to gas stations, fleets, farms, and other businesses.
- Handle the money side: invoices, credit terms, and collections.
- Track and pay the fuel taxes on every load they move.
- Keep the paperwork straight, from the bill of lading to the final invoice.
Where a jobber sits in the supply chain
Fuel takes a set path from the refinery to your tank:
- The refiner makes the fuel.
- A pipeline or barge moves it to a terminal.
- At the terminal, the fuel sits in big tanks. The loading point there is called the rack.
- The jobber buys at the rack and loads trucks.
- The jobber delivers to stations and businesses.
- The station sells it to drivers.
The jobber is the link between the terminal and the retail station. To see why that loading point matters so much, read above the rack vs below the rack.
How a fuel jobber makes money
A jobber makes money on the margin, which is the gap between what they pay at the rack and what they charge the customer. They add a markup per gallon and a freight charge to cover the haul. The markup is small: state petroleum marketer associations put the typical jobber margin at roughly one to five cents per gallon over rack, and it moves with the market. At three cents, a 9,000-gallon load earns about $270 before the truck, the driver, and the credit risk are paid. That is why the business runs on volume, and why small pricing and tax errors add up fast.
Jobber, distributor, marketer, retailer: what is the difference
These words overlap, and people in the trade use them loosely. In plain terms:
- Jobber. A wholesaler who buys fuel at the terminal and sells it down the chain. The classic term for the middle link.
- Distributor. Usually means the same thing as a jobber.
- Petroleum marketer. A broader term for any company that sells fuel, which often includes jobbers.
- Retailer. The gas station or convenience store that sells fuel to drivers.
One company can wear more than one hat. Many jobbers also own stations, so they act as a wholesaler and a retailer at the same time.
Branded vs unbranded jobbers
A branded jobber carries a major brand like Shell or BP and signs a multi-year supply contract that comes with image standards for canopies and signage, the brand's additive package, and volume commitments. An unbranded jobber signs no long-term deal and can shop the rack for the cheapest gallon each day, but gets no brand support and no protected supply when terminals run tight.
What runs in a jobber's back office
The daily work of a jobber lives in the back office. The core pieces are:
- BOL to invoice. Turning each bill of lading into a customer invoice without typing it twice.
- Fuel tax. Tracking and filing the per-gallon taxes on every load. See motor fuel excise tax explained.
- Allocation. Rationing supply when the terminal limits how much you can buy. See what is fuel allocation.
- Settlements. Checking that what the supplier billed matches what you got.
- Inventory. Knowing how much fuel is in each tank.
Most jobbers start on spreadsheets and QuickBooks, then move to fuel software as the volume grows. For where that line sits, read jobber software vs QuickBooks and spreadsheets.
Frequently asked
Why is it called a jobber?
The word comes from old merchant trade, where a jobber bought goods in bulk lots, or "jobs," and resold them in smaller quantities. Petroleum kept the term for the wholesaler who buys truckloads at the terminal and parcels them out to individual stations and accounts.
Do you need a license to be a fuel jobber?
Yes. States license motor fuel distributors and typically require a bond before you can buy tax-free or collect and remit fuel taxes. Certain federal excise activities also require IRS registration on Form 637, and hauling fuel adds hazmat and DOT requirements on top.
How much fuel does a jobber deliver in one load?
A full transport trailer carries roughly 8,000 to 9,500 gallons, depending on the trailer and the weight of the product. Smaller bobtail trucks, used for tight sites and home or farm tanks, carry a few thousand gallons or less.
Can a gas station buy fuel directly from a refiner instead of a jobber?
Usually not. Refiners sell in bulk at the terminal rack, and a single station rarely has the volume, the trucks, or the credit line to lift there. High-volume chains and hypermarket fuel sites sometimes buy direct, but most independent stations are supplied by a jobber.
A fuel jobber runs a high-volume, thin-margin business with a lot of moving paperwork. FastDragon is back office software built for jobbers, wholesalers, and station owners who want their tools shaped around how they actually work.