Winter 2018 shows no signs of abating, and with the prolonged cold snap comes a prolonged increase in the cost of heating oils. As users continue to rely on Gasoil and Kerosene for heating, suppliers are looking to benefit from the necessity of increased purchase volumes.
Significantly, winter increases in Gasoil prices also impact organisations using Gasoil for (eg.) plant, marine and rail traction, refrigeration motors, generators, etc.
Cold winters inevitably result in higher fuel bills, and the longer the winter the higher the cost for businesses. For most enterprises, gas and electricity prices are at fixed agreements, with little flexibility within contract. However heating oils tend to be procured on a ‘spot price’ basis, with the user exposed to margin enhancement by suppliers as demand rises. Users are therefore faced with a potential cost double-whammy of increased volume and increased prices.
Expense Reduction Analysts’ fuel experts have years of experience in negotiating heating oil prices and a solid track-record of producing results for organisations in a range of sectors.
Fuel specialist Duncan Rogers says:
“We find that fuel pricing can be very difficult for clients to manage, and is apparently driven by smoke and mirrors tactics that suppliers use to confuse users. Any increase in demand can result in margin enhancement, and users have no measure as to whether best value is being obtained when placing orders.
“Reviewing this situation now ensures that exposure to enhanced price increases is reduced, whilst enjoying the full benefits of any subsequent price reduction when prices fall in future.
“Act now before this prolonged cold snap freezes your business growth. Now is the time to talk with us about an ERA Fuel Team review of your business’ fuel spend”
Article by: Duncan Rogers