Fuel prices are anything but steady. Drivers never know what to expect when they pull up to the pump. For many businesses that purchase bulk fuel, fuel prices are a major concern. Companies with fleets have to keep their vehicles on the road, but when prices are always up and down, it can be nearly impossible to budget, leaving business owners clueless about their bottom line.
Why Do Fuel Prices Change?
There are lots of factors influencing the price of fuel at any given time, from the price of crude oil, to disruptions in the supply chain. Seasonal fluctuations can be some of the most intense changes. The U.S. Energy Information Administration explains that fuel prices tend to be higher in the spring and late summer before dropping again in the winter months.
Different seasons not only bring changing demand, but they also bring new fuel requirements. In the summer months, fuel must be formulated to be less prone to evaporation. Refiners have to use more expensive fuel components to create this special summer fuel, and prices at the pump rise as a result.
Mitigating High Fuel Costs for Fleets
We can’t control the price of fuel, but fleet managers do have options to ease the pressure. Purchasing fuel in bulk ensures that your vehicles will have the gas they need to keep your business moving, even when fuel is hard to come by. You can also spend less time budgeting for fuel when you don’t purchase it as often.
If you’re working with a bulk fuel supplier, you may be able to pursue a fixed-price contract. You’ll have a reliable price to work with while ensuring you won’t run out of fuel. At Guttman Energy, we offer a competitive fixed pricing program with flexible terms to meet your unique needs and business goals.
Fleets may also opt for a cap program to minimize fuel costs. Customers can work with a Guttman representative to set a “cap” price for fuel, ensuring that they never pay more than they’re comfortable with. The “cap” will cover a specific volume of fuel for a chosen time period. If market prices fall, you’ll get more bang for your buck, but if prices rise, you won’t be left high and dry.
Guttman Energy offers several other fuel pricing programs based on market indexes like the Oil Price Information Service (OPIS), Platts, Argus, and the New York Mercantile Exchange. These programs allow businesses to take advantage of local market prices and get the best value for their money.
Other Ways Guttman Energy Can Help
No matter the size of your fleet, fuel is a constant need. Guttman Energy has worked with countless companies across the Northeast U.S. to meet varying fuel requirements. Each client is assigned a dedicated Guttman representative who will get to know your business and its goals. We’ll help you secure the fuel you need at a price you can work with, all while providing advice and strategies for using fuel efficiently and moving your business forward.
While we can’t predict the price of fuel, we can get ahead of the changing market and keep your fleet going with confidence. Get in touch with Guttman today to see how we can support your business through our fleet fuel delivery and fuel management services.
