What is a Fuel Contract?
When we say contract, we do not mean onerous legalese that binds someone forever to purchase fuel. What we mean by, ‘fuel contract,’ is to purchase fuel based off of a mutually agreed price benchmark that is publicly available so that both parties have insight into the fuel price, everyday. Therefore, the word “contract” in this context actually represents the benchmark on which the fuel price is based (OPIS Contract Average, OPIS Rack Low, Platts Gulf Coast Mean, Argus etc.).
How Does Desert Fuels Do Fuel Contracts Differently?
Contrasting with “Other Suppliers”: Normally, fuel suppliers will make you sign a 15-page, incomprehensible fuel contract that gives them the right to force you to buy the fuel at the volume agreed. It will also give them legal recourse if you don’t. And if you are unfamiliar with fuel contracts, they may take advantage and force you to pay a consistently higher price. Sound bad? Well it sure can be, if you buy contracts from them. (Read an example here of a fuel contract gone bad.)
The Desert Fuels Difference: In contrast, take a look at our “legal” language. It’s written to be understood, not to confuse. Like you, we get paid by the number of gallons we sell, not the number of words we squeeze on a page. But, some words can be very important. Here’s one of ours:
We give you our word: If you ever over-pull or under-pull the projected volume, no worries! No penalties or costly gotchyas. Ever!”The primary aim of our contracts is to make good customers, not sales. A fuel contract can give you some serious advantages if the contract is done right. And, good news, we do fuel contracts right!
Top 5 Reasons to Buy Fuel Off of a Desert Fuels’ Contract
- Fair & Competitive Pricing—Always: That’s because what you’ll pay is locked into a published, transparent, fuel market benchmark, plus-or-minus an amount both of us agree to for your preferred period of time.
- Fuel When You Need It: The gallons you expect are set aside for you.
- Time Savings: No more valuable time spent ‘shopping’ fuel prices and contacting and comparing multiple suppliers. You can keep it simple and easy with one, ‘go-to’ source, guaranteeing you the promised price.
- Your Own “In-House” Fuel Buyer: Without us taking up your in-house space, you’ll enjoy the full-time feel and function of an “in-house fuel buyer,” accurately predicting tomorrow’s price by always assuring you the better of two days.
- Price Control: “But,” you say, “this is the fuel industry; there’s no such thing as ‘price control’.” Look again:
- Price Stability: You’ll pay a steady, stable price, undisturbed by the daily dice-throw of the fuel market roller-coaster.
- Price Protection: You’ll insulate yourself from both the price spikes that can come out of nowhere, and the anxiety they cause.
- Price Predictability: You’ll be able to accurately forecast your fuel budget
What Types of Companies Should Buy Fuel on a Contract?
Fuel Contracts are Great for Companies that…
- Need consistent and reliable supply
- Use fuel to run their business, not for resale
- Want to spend less time shopping fuel prices
- Want to take less time managing fuel expenses and orders
- Want to know they are always getting a competitive price
- Ideal for:
- Trucking Companies
- Municipalities & Government Organizations
- Waste Management Companies
Fuel Contracts are Not Good for Companies that…
- Re-sell fuel for profit
- Care more about a fraction of a cent in savings over reliability
- Want to spend time shopping prices everyday
Ready to buy off of an honest fuel contract? Call us 1-888-750-FUEL(3835) and we can get you a contract quote today.