Trucking firms suing in federal court say they thought Pilot’s “cost-plus” offers were based on Pilot’s actual fuel costs, when in fact they were based on an industry average.
Following the 2013 FBI raid on Flying Pilot J, the company quickly settled many rebate fraud claims but a handful of companies that refused to settle now say they have uncovered a deception that other firms overlooked, according to a report by the Associated Press.
According to court documents and the Associated Press, the trucking companies agreed to buy fuel exclusively from Pilot Flying J in exchange for special rates, which varied between companies. The rates were based on the fuel cost plus a few cents per gallon. Pilot admits that in many cases it did not deliver the promised rate—for example, adding on three cents per gallon instead of the promised two cents per gallon.
But the trucking firms suing in federal court are claiming they were also deceived in that they were led to believe Pilot’s “cost-plus” offers were based on Pilot’s actual fuel costs, when in fact they were based on an industry average plus fees and taxes.
“Pilot, as the largest retail supplier of diesel fuel, does not pay an average price,” the lawsuit claims.
Pilot attorney Aubrey Harwell told the Associated Press that Oil Price Information Services contract average used by Pilot is simply the industry standard. “For many years, Pilot has been totally transparent about the basis for cost. They have not taken advantage of any customers, notwithstanding the allegations by a select few to the contrary,” Harwell said.