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Is A Fixed Fuel Contract Right for You?

Many of our customers are looking for a better way to forecast fuel costs, and locking in prices is a powerful budgeting tool to weather the unpredictable swings in the market. If that includes you, Davidson Oil wants to offer you a guaranteed way to convert one of your most volatile costs to a fixed line item in your budget. Companies that want to guard against huge swings in operating expenses and protect bottom-line profitability often choose to benefit from a fixed-forward fuel contract.

By
Brad Nickell
,
on
June 30, 2023

Davidson Oil is introducing a fuel purchasing strategy to help our customers lock in their fuel at some of the lowest prices we’ve seen in decades!

A fixed-forward contract means you “lock-in” a set price per gallon that is guaranteed throughout the contract period, regardless of how crazy the market behaves.

Is A Fixed Fuel Contract Right For You?

Many of our customers are looking for a better way to forecast fuel costs, and locking in prices is a powerful budgeting tool to weather the unpredictable swings in the market. If that includes you, Davidson Oil wants to offer you a guaranteed way to convert one of your most volatile costs to a fixed line item in your budget. Companies that want to guard against huge swings in operating expenses and protect bottom-line profitability often choose to benefit from a fixed-forward fuel contract.

You too can experience that rare feeling of knowing you’re consistently paying a fair, reasonable, and stable cost instead of getting regularly nailed by higher and higher prices while regretting that you didn’t buy when fuel was much cheaper.

How Does a Fixed-Forward Contract Work?

Bulk fuel buyers who choose fixed-forward contracts often purchase around 50% to 80% of their projected fuel budget at a fixed price for the year, shielding themselves from uncontrollable price swings, while betting the balance of their budget on the constantly fluctuating prices that drive the market each day.

All you have to do is tell us how many gallons you want to purchase per month and then choose how many months you want the fuel delivered (anywhere from 1 to 12).   We’ll do the math and guarantee a set price for those months.

What Are The Benefits of Locking In Your Price

- Accurately forecast your budget, and actually come in at or under it

- Level the pricing playing field

- Avoid unforeseen fuel costs

- Smooth out your cash flow

- Take away the daily anxiety of the market’s endless price swings

- Enjoy a dependable supply of fuel

- Protect your fragile profit margins

What are the Downsides?

There are none, if you stick to your budget. A fixed-forward contract doesn’t mean you’ll pay the lowest price per gallon every day. Rather, you’ll benefit from a steady, even price, undisturbed by the market roller coaster.

How Can Davidson Oil Help?

When it comes to how to save money on fuel, we tell you what other suppliers won’t, and we’re glad to do it. We’re pros at structuring fixed-forward fuel contracts, and will design one that’s just right for your needs.

Call us today at 877-362-4383 or drop an email to sales@davidsonoil.com, to discuss your fuel requirements and how a fixed-forward contract can be a great bottom-line planning tool for you. We’re available anytime to answer your questions and get you the facts you need to make what can be one of the smartest business decisions you’ll make this year.