I do some shopping and run errands for some seniors in my area. They reimburse me for gas. Should I ask for reimbursement at the price I paid when I last filled the tank, or get covered for the expense at the current price, or the price at my next gas purchase?
Reimbursement for Gas Expense
- Thread starter Shel_B
- Start date
Depends on how bad you need the money to keep doing what you're doing.
I’d use IRS standard mileage to make it easy. It’s probably lagging current gas prices a bit now.
With the current volatility, it is a reasonable question.
Since you have to pay current pricing to replace what was used, I would charge them the current market price.
$0.585/mile is the current rate.
Nick1994
$100 site donor 2024
I can't imagine it mattering that much.
Drive 10 miles for them, use 1/2 a gallon of gas. A $1 difference tops?
Drive 10 miles for them, use 1/2 a gallon of gas. A $1 difference tops?
I don't need the $$$ at all, but they insist on compensating me fairly. To refuse would be an insult.
Depends if you want to gouge them. I wouldn't take advantage of them. Get paid for what you spent for that tankful and then let them know you will need more for added expense at he next pump visit.
You just need to follow the same method all the time then. If you don't need the money, just charge for whatever you paid for the gas. The next time you refuel, you'll pay more, but then you'll get it back if you give them rides. It basically works both ways, you could charge them what it costs to fill up afterwards, so it will be cheaper for them when prices are falling but now it's more expensive because prices are going up. Either way is a wash. Gas stations like to charge the current cost of whatever a new load cost them because they can't front the additional expense for the higher priced load. They're in it to make a profit though. If you don't need the money, charge whatever you paid. You're losing money anyway if they're just paying for gas.
If you charge them for todays pump prices and you don't need gas for another week it could drop then you'd feel bad.
If you want to over-analyze it and bring math into the equation (no pun intended), I presume you'll have overlap from your trips where you cover things for more than (1) person. Or if you simply go by miles, factor in the MPG your car gets, it is likely to be a few dollars per person. The IRS has a rate per mile (others have mentioned), but that ends up sounding too official or business-like.
Why not just tell each person "$5" or "$5 + fresh-baked cookies" or a dessert ?
Don't overcomplicate this.
