Why Tracking Meter Drift is Essential: Protecting Your Revenue and Staying Compliant with the ND PSC

Posted on November 3, 2025 by Matt W

In the fast-paced world of North Dakota’s retail fuel industry, every gallon counts. With harsh winters, high-volume stations, and razor-thin margins, even small inefficiencies can erode profits quickly. One often-overlooked culprit? Meter drift in your gas dispensers. This subtle shift in meter accuracy might seem minor, but it can lead to significant revenue losses and put you at odds with the North Dakota Public Service Commission (ND PSC). In this post, we’ll break down what meter drift is, why it’s a silent profit-killer, its ties to compliance, and how you can stay ahead of it. As your trusted petroleum equipment partner here at HOBBS Incorporated, we’re committed to helping ND fuel retailers like you safeguard your bottom line.

What Exactly is Meter Drift?

Meter drift refers to the gradual inaccuracy that develops in fuel dispenser meters over time. These meters measure the volume of fuel dispensed to customers, but wear and tear—from constant use, temperature fluctuations, or mechanical misalignment—can cause them to “drift.” Typically, this drift results in the dispenser delivering more fuel than what’s charged (over-dispensing), though under-dispensing can occur too.

Think of it like a scale at your local grocery store that’s slightly off: Customers walk away with a bit extra (or less) without realizing it. In fuel terms, even a 1% drift across thousands of gallons sold daily adds up fast. According to industry experts, meters often drift positively as they age, turning your dispensers into unwitting generosity machines.

The Revenue Drain: How Meter Drift Costs You Thousands

North Dakota’s fuel stations pump millions of gallons annually, and with average gas prices hovering around $3.50 per gallon, precision is your profit protector. But unchecked drift turns that precision into peril. Here’s why tracking it is non-negotiable:

1. Direct Financial Losses from Over-Dispensing

• A mere 0.5-1% drift might not raise eyebrows at first, but scale it up: At a busy station selling 50,000 gallons per month, a 2% over-dispense could mean giving away 1,000 gallons for free. That’s $3,500 in lost revenue monthly—or over $42,000 annually—before accounting for diesel or premium grades.
• Real-world example: One large retail network identified a drifting meter giving away 50-65 gallons monthly, equating to $4,500 in annual sales evaporation. Multiply that across multiple nozzles or sites, and you’re looking at six-figure hits.

2. Compounding Effects on Inventory and Margins

• Drift contributes to “wetstock variance”—the gap between what you order, store, and sell. Combined with evaporation or minor leaks, it can skew your cost-of-goods-sold (COGS) calculations, making your financials unreliable. For c-stores and stations operating on 2-5% margins, this is a recipe for red ink.
• Under-dispensing flips the script: You might pocket extra cents per gallon short-term, but it erodes customer trust and invites complaints or lost business.

3. Hidden Costs: Maintenance and Downtime

• Ignoring drift leads to premature wear, requiring costly re-calibrations or full dispenser replacements (recommended every 10 years for optimal accuracy). Proactive tracking via tools like advanced variance analysis can spot issues early, slashing service calls and downtime.

In short, meter drift isn’t just a technical glitch—it’s a revenue leak that could cost your station thousands yearly. As one fuel management specialist notes, “Early identification… will ultimately save fuel retailers a significant amount of money and prevent unnecessary dispenser downtime.”

Compliance Corner: ND PSC Rules You Can’t Ignore

Beyond the bucks, meter drift is a compliance minefield in North Dakota. The ND PSC oversees public utilities, including fuel measurement standards, to ensure fair trade and consumer protection. While specific PSC rules focus on utilities like natural gas distribution (e.g., ND Century Code Title 49), fuel dispensers fall under broader weights and measures regulations enforced by the ND Department of Agriculture and aligned with PSC oversight for accuracy in retail sales.

• Testing Requirements: ND law mandates that meters be tested and calibrated periodically—often annually or upon installation—to stay within tolerance (typically ±0.3% for dispensers). The PSC requires utilities (and by extension, retailers) to arrange approved testing, with non-compliance leading to fines, shutdowns, or revoked licenses.
• Why It Matters: Inaccurate meters violate consumer protection statutes, exposing you to PSC investigations, penalties (up to thousands per violation), and reputational damage. Under-dispensing, in particular, could trigger weights and measures audits, as seen in similar cases where stations faced hefty fines for shorting customers.
• PSC’s Role: As North Dakota’s watchdog for fair rates and regulations, the PSC emphasizes accurate metering to prevent disputes—much like their work on electric and gas utilities. Staying compliant isn’t optional; it’s a legal shield.

Drift accelerates non-compliance: A meter off by just 4 cubic inches per 5 gallons could lead to 1,384 gallons over-dispensed yearly across a few nozzles—triggering PSC red flags if detected during routine inspections.

How to Track and Fix Meter Drift: Actionable Steps

The good news? Tracking drift is straightforward with the right approach. Here’s your roadmap:

1. Implement Regular Audits: Schedule annual calibrations with certified techs (like our HOBBS Incorporated team). Use proving cans to simulate real-world dispensing for spot-on results.
2. Leverage Tech Tools: Invest in variance analysis software that monitors transactions 24/7, flagging drifts as small as 0.5%. Cloud-based systems provide real-time alerts, prioritizing fixes by revenue impact.
3. Calculate Your Risk: Use our free Gas Dispenser Meter Drift Calculator to input your gallons sold and water column deviation—see your potential losses instantly.
4. Upgrade Smartly: Opt for low-drift meters (e.g., Wayne or Coriolis models) with electronic calibration for long-term stability.

Pro tip: Track ambient temperature swings too—they exacerbate drift in ND’s variable climate.

Wrapping Up: Don’t Let Drift Drive You Backward

Meter drift is more than a mechanical nuisance—it’s a double threat to your revenue and regulatory standing. In North Dakota, where the PSC demands precision for fair fuel trade, ignoring it risks fines, lost trust, and thousands in evaporated profits. But with vigilant tracking, timely calibrations, and tools like our calculator, you can turn potential pitfalls into protected gains.

At HOBBS Incorporated, we’ve been serving ND’s petroleum needs for over 70 years with compliant, reliable solutions. Ready to audit your meters or calculate your drift risk? Contact us today for a no-obligation consultation. Let’s keep your station pumping profits, not giveaways.

What’s your biggest fuel management challenge? Share in the comments below—we’re here to help!