Forward Fuel Contracting is designed to relieve the worry that accompanies today's volatile fuel prices. It gives you the assurance of knowing what your fuel costs will be for a certain period of time. Although the high-demand season for petroleum often brings higher prices, you have the opportunity to gain more control over your fuel costs with Forward Fuel Contracting.
HOW IT WORKS
The contract includes the type and quantity of fuel to be purchased, as well as fuel cost. A representative from your local MFA Oil bulk plant will provide you with current price quotes. When your target price is met, simply determine the type and quantity of fuel you wish to purchase at the guaranteed price.
- Assurance that your fuel price is stable for a certain period of time.
- Ability to tailor contracts to your individual needs.
- Opportunity to take advantage of market declines while being protected on your maximum fuel price.
- Ability to budget fuel costs.
TYPES OF CONTRACTS
Forward Fuel Contracting offers two types of contracts for fuel procurement:
- Fixed price contracts allow customers to secure a price of fuel per gallon for the duration of the contract period. Your price is "locked in" and therefore does not fluctuate.
- Maxiumum price contracts allow customers to take advantage of the lower market price in a declining market. By paying a premium, you insure that your fuel price will not go higher, but will go lower if the market declines. Your local MFA Oil bulk plant representative will provide you with current price quotes as well as the cost of your premium.
Forward Fuel Contracting is available to customers year round. Contracts can be established at any time throughout the calendar year for up to 12 months. You also have the convenience of choosing your fuel delivery method. Choose from Petro-Card 24 purchases, tankwagon delivery or direct delivery from the terminal.>
MFA Oil representatives are available to answer your questions about Forward Fuel Contracting. For more information, contact your local MFA Oil refined fuels plant and get your forward fuel contract under way today.