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The Key To Regulating Your Fuel Management Costs

Wednesday, June 20th, 2018
fuel tips from Kendrick Oil

Unstable costs are one of the biggest concerns for businesses that require large amounts of fuel. The prices of oil and gas can vary across different regions. If your business uses a fleet of vehicles, then you are most likely familiar with price swings. Managing the budget around these price changes can be difficult, even if the price of bulk or wholesale varies just a half cent per gallon.

The key to regulating your fuel costs is to purchase fixed future contracts to lock in prices. Here are more details about how to do this and why fixed wholesale fuel prices are designed to save you money and protect your budget.

Figure out your basic needs

Do you know the number of gallons per month your fleet needs to operate? Work with your regional fuel distributor to adequately determine this number if you do not. Commit to purchasing a specific number of gallons each month to help establish your fleet costs. Your business will not be subject to the fluctuations in market demand when your company receives fuel at a fixed price. However, you will need to make sure that all of your drivers know how much fuel they can use for their vehicles to prevent going over budget.

Working with your fuel supplier

Optimizing the fuel efficiency of your business by measuring fueling needs is one of the most important things your supplier can help you with. They should be able to customize these services based on your needs. It is their job to keep a close watch on the oil and gas market to better help you. Their industry experience enables them to offer you recommendations about the best time for you to buy fuel for your fleet.

Check with your distributor to see if they can provide an analysis of the fuel products you use. If you use cheaper and lower quality products, they could end up costing your business more over time when repair and maintenance costs are calculated. Take advantage of the industry expertise of your fuel supplier in order to optimize the overall performance of your fleet. Their experience and knowledge can save your business money and protect your equipment.

Designing customized fuel plans around your usage patterns and schedule is something that your supplier can help you with too. You should make sure that your fuel distribution partner’s presence is strong in the region where your business operates. This will help guarantee the lowest possible fixed cost for your company and a steady supply of fuel.

Know the benefits of a fixed price contract

The benefits your business will see from purchasing fuel contracts are numerous. No matter what happens in the gas market, buying your fuel at a fixed price helps you successfully manage your budget. You are better able to devote your time to doing what work you do best, rather than trying to keep up with market trends.

Your business will not be subject to fluctuations or variations in market demand when you have a fuel contract in place. The price of fuel may drop below your fixed price for a short while. However, this should not affect you much because you’ve established a price that makes financial sense for your company. Also, you have an immediate advantage over your competition once that price rises again. That advantage is essential in today’s surging fuel market.

Getting a fuel contract with Kendrick OIl Company

If you would like to purchase bulk fuel or learn more about Fixed Price Contracts, contact the professionals at Kendrick Oil today. You can call us at (800) 299-3991 or Contact Us by email for more information about our Products and Services. We carry low-grade, medium, and premium fuels throughout the United States including Texas, New Mexico, Oklahoma, Kansas, Colorado and Louisiana.