Cost-Plus Fuel Savings vs. Retail-Minus Fuel Savings


When running a business — especially a trucking company — you’re going to be on the lookout for ways to save money constantly. While you’ll have plenty of options to choose from, you also want to make sure that saving money doesn’t come back to bite you in the tail. 


With that being said, it’s essential you cut costs where it matters most and also understand that some areas of your business are worth investing in. For any fleet owner looking for ways to save, there are two things that go hand-in-hand with each other — freight factoring and fuel cards. 


Not all fuel cards require a freight factoring contract and not all factors offer fuel cards, but having one without the other simply doesn’t make sense. 


As you might’ve guessed, fuel cards allow you to save money on the fuel your drivers use on a daily basis. On the other hand, freight factoring allows you to receive an advance on open invoices so you don’t have to wait the typical 30-90 days for payment. 


When dealing with a factor that offers a fuel card, you’ll likely come across two types of fuel savings — cost-plus fuel savings and retail-minus fuel savings. Don’t worry; we’ll discuss the difference below!


What Are Retail-Minus Fuel Savings?


Retail-minus fuel savings are easy to understand and can be broken down rather easily. 


With retail-minus, you’ll pay for the gas just like you normally would. You pay the full retail price (whatever the pump says) and you go about your day. Depending on the contract, you’ll receive a rebate at a later date that pays you a set amount per gallon bought. 


You pay the retail, they rebate you later (that’s the minus).


What Are Cost-Plus Fuel Savings?


Cost-plus fuel savings are going to be the more complex version, but it could save you much more money depending on where you’re doing business. At the same time, it could lead to fewer savings — which is why it’s important to know the difference between fuel savings. 


Instead of paying full retail price, you pay a rack price determined by the Oil Price Information Service (OPIS) — a nationwide index. This can be beneficial when transporting goods in cities or states with high costs of transportation. 


Receiving More Help With Freight Factoring


In addition to the fuel savings you can receive, freight factoring effectively allows you to disband a majority of your accounts receivables department — or at least give them fewer follow-ups to maintain.


When you receive an advance on an invoice, it becomes the factor’s responsibility to follow-up with the client and receive payment. Once payment is received, they’ll send you the rest of the amount you didn’t receive in the advance (minus a small fee). 


With fuel savings and freight factoring, your business can save money where it matters most and reduce the risk of having cash flow issues due to payments coming 1-2 months after completion. 


If you’re interested in freight factoring, check out our websites for some of the most reputable companies in the industry. 




“The Difference between Cost-Plus and Retail-Minus Fuel Savings.” RTS,


Corp, Apex Capital. “How Are Fuel Discounts Determined?: Apex Capital Blog.” Apex Capital | Freight Factoring for Trucking Companies, 6 July 2018,