Portland Fuel has emphasised the importance for fleet operators of ensuring they are able to stabilise diesel costs, in the context of a year of extreme fuel price volatility.
Since 2009, the company has been offering its customers the opportunity to lock in a long-term, guaranteed fixed diesel price for up to 12 months in advance, no matter how they purchase fuel.
This means that whatever happens in the oil market, their clients always pay the same fixed cost for every litre.
The customer tells Portland the quantity of fuel per month they would like to lock in a price for, and Portland does the rest. It is even possible to provide Portland with a target price.
The company offers bulk diesel at a fixed price for 3 to 12 months ahead, for a minimum load size of 25,000 litres.
It can also provide fuel cards at a fixed price for 3 to 12 months ahead on the UK Fuels, Keyfuels or Fastfuel networks. Portland issues the cards, fuel is drawn at the fixed price up to the agreed monthly volume, and anything used over and above this is charged at a competitive weekly rate, says the company.
Additionally, fixed-price bunkering is offered for 3 to 12 months ahead into the UK Fuels or Keyfuels networks. With this service, Portland transfers the diesel into the account at a fixed price and the customer uses their existing cards as normal.
“In all these fixed price scenarios, if the market price rises, your price is still locked in, however the same applies if the market price falls,” said the company.
“The aim of Portland’s service is not to try and beat the market from week to week, but to know exactly what will be spent on fuel over a specific period.
“Fixed price fuel with Portland means you have complete certainty over diesel costs, so your business can budget with confidence and stay ahead of the competition. There are no fees involved with locking in a price and very low minimum volume requirements.
“You wouldn’t accept large weekly price fluctuations for any other supplies, so why accept them for fuel?”