Fixed Price Fuel
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|