Fuel Purchasing Programs

InterState Oil Company provides a variety of customized fuel risk management purchasing instruments for all types of customers to protect against the traditional volatility and:

  • Eliminate the risk of volatility and drastic
    price increases
  • Provide a competitive advantage during periods
    of rising prices
  • Allow a fuel budget to be successfully met

Many of our agricultural, commercial, industrial and transportation companies take advantage of this instrumental tool on a daily, monthly, and yearly basis. Many variables including growth in demand, consolidation in the market-place and distribution system, aging infrastructure, changing product specifications have all contributed to creating an extremely volatile market. We suggest using a customized approach to your fuel purchasing needs in order to maximize your cost savings during damaging fuel price increases. There is no better way to budget and mitigate your risk than to implement a program that offers you flexibility and control over part of your fuel expenditures.

The following are two recommended risk management options we offer:
Fixed Price
A Fixed Forward Price is used for a percentage of your overall fuel demand in a particular specified time period. All that is needed to consider is what volumes or percentage of demand you would like to lock in, what period of time, and where you want it delivered. With diesel prices changing in this volatile market, this is an excellent choice to get a better handle on a fleet’s bottom line profitability. Instead of being at the mercy of the market, use Fixed Prices to purchase a portion of your fuel demand at a budgeted cost per gallon.
Capped Price
The capped price or call option allows you to agree to a maximum fuel price for a specified volume, period and location yet also allows you to participate in lower prices if the market falls below that level. You usually pay a “cap premium” for this protection against rising prices.

We can customize your approach to getting a better handle on fuel budgeting for future purchases. Call and speak to one of our professional fuel management specialists today to get started.

  • No minimum volumes
  • Time period: 1-12 months