20 September 2019

 

If fuel is a key component of your business costs then you should consider our Fixed Price Contract offering.

 

Fixed Pricing is a method of hedging your exposure to fluctuating fuel prices, bringing predictability to a significant cost in your business and protecting budgets for the period of the contract.

 

Events of the last few days have demonstrated the volatility of the oil market and the unexpected events which can suddenly impact on price. Attacks on oil fields in Saudi Arabia at the weekend, disrupting 5% of the worlds global output or 5.7 million barrels per day, resulted in Brent Crude having its largest jump in price on record, a 14.6% increase. The local impact of this was a 5 cent per litre increase in fuel supply prices by Tuesday morning. Weeks or months of disruption may follow, adding significantly to the volatility of the oil market. The barrel currently sits at $63 with predictions from Goldman Sachs of it hitting somewhere in the $75 – $100 range if supply is not restored quickly.

 

Despite this significant increase on Tuesday and due to the likely ongoing uncertainty, prices are still at a level at which it makes sense to examine the benefits of fixing your fuel price for a set period of time.

 

Why choose Fixed Pricing?

Issues with taking the Market Price	Benefits of Fixing Your Price
Fuel prices constantly fluctuate, making costs unpredictable	The variability is removed, you now know the price you are paying for fuel
Your business is heavily reliant on fuel in it’s operations	This significant element of your costs is now known based on the volume you anticipate using
Fuel price volatility negatively impacts your budgeting activity	Budgets can be more accurately set and more closely adhered to as a large unknown has been removed
Large increases in fuel prices may occur	Insures your business against potential crippling increases in fuel prices which are outside your control

 

To find out more about Fixed Pricing and how it could benefit your business please contact:

Jerry Malee	Gemma Byrne
Senior Commercial Sales Manager	Commercial Sales
087 9218090	085 2430739
Jerry.Malee@emo.ie	Gemma.Byrne@emo.ie