Navigating the bulk fuel industry can be a confusing experience, especially if you’re a newbie. While one page won’t give you all the information you need about this industry, this is a great place to start. Here’s a simple and easy guide to purchasing bulk fuel that’ll help you get the most bang for your buck.
Reach Out to A Dependable Fuel Supplier
The most essential component of your business is to have a solid, friendly connection with a trustworthy supplier who can cater to your needs.
When searching for fuel suppliers, research more about their offerings, their customer service reviews, and other important information. Unreliable suppliers who fail to meet their obligations on time can cause you to incur heavy losses if not kept in check.
Inquire more into your supplier’s sources and how reliable they are. Ensure that your supplier has multiple fuel sources so that they’re equipped to handle issues like unexpected fuel price hikes and shortages.
Having a supplier who sources their fuel from multiple sources will ensure you have a steady, stable supply that shelters you from unexpected price fluctuations and fuel shortages.
Go For Fixed Contracts
Buyers have two ways to purchase bulk fuel – either via a predetermined contract or by using spot prices. Spot purchasing involves purchasing fuel as and when needed without any kind of schedule or prior arrangements.
Spot buying leaves you vulnerable to market fluctuations and supply issues. If your tank is in the red by the time you reach the station to purchase fuel, you’re far more likely to make hasty decisions that cost you more in the long run.
You can easily avoid this by signing a contract with the supplier for a specified quantity and time period.
Signing a contract can offer you some incredible benefits. Firstly, it allows you to set the purchase price accurately, protecting you from price fluctuations and market troubles. Not accounting for these factors can eat into your revenues and profits over time.
Secondly, contracts let you refine your budget by allocating a specified amount for this purpose, thus ensuring you’re never caught by surprise. You can streamline your company’s cash flow better this way.
Thirdly, bulk fuel contracts ensure you’ll always be a priority to the supplier over others. You’ll always be given the first preference whenever you need to fuel up
Learn About Price Benchmarks in the Oil Industry
Try to find out what benchmarks are used by your supplier for fuel pricing purposes. Ideally, the contract price must be based on a reliable industry benchmark like the Oil Price Information Service or OPIS.
Using industry benchmarks to set your contract prices ensures responsiveness and price transparency. It’s easy to find out whether you’re overpaying for your fuel this way, compared to on-spot pricing.
If you want a value-for-money deal, stay informed regarding the latest domestic and global fuel market trends. You can use this information to renegotiate contracts for better prices, plan out your usage, anticipate price fluctuations and fuel shortages, and keep your business prepared for unexpected downturns in the industry.
FNF Petroleum has a longstanding reputation for being a reliable wholesale gasoline supplier. Several of our customers have acknowledged our reputation for transparency and quality, who get the most value-for-money deals available in the market today. Reach out to us for more information. We’re more than happy to come up with a personalized plan for your needs.