How does a fuel contract work for fleets?
How does a fuel contract work for fleets?
Fleets using fuel contracts agree to a set price per gallon for a set amount of time — typically a year or two years. While gas prices fluctuate throughout the year, their prices stay the same. Sometimes that means a fleet wins, seeing lower-than-average prices per gallon over the course of the contract.
Which is an example of a fleet management contract?
Fleet or vehicle management can include a wide range of functions, such as vehicle financing, vehicle maintenance, vehicle telematics (tracking and diagnostics), driver management, speed management, fuel management, and health and safety management.You may also see business management contract examples
What should I look for in a fuel contract?
Take into account the size of your fleet, the number of fuel tanks you have on site, how much fuel you currently use, and how consistent your fuel usage is. “Though there is no set standard or average amount of fuel to contract, it’s important for fleet owners not to overpromise to the supplier,” Mossman said.
Which is the best way to negotiate a fuel contract?
While there are no guarantees a fleet will save money per gallon over the course of the contract, you’ll want to negotiate a below-market price. Start with market indices like Platts, OPIS, or Argus.
Fleets using fuel contracts agree to a set price per gallon for a set amount of time — typically a year or two years. While gas prices fluctuate throughout the year, their prices stay the same. Sometimes that means a fleet wins, seeing lower-than-average prices per gallon over the course of the contract.
Take into account the size of your fleet, the number of fuel tanks you have on site, how much fuel you currently use, and how consistent your fuel usage is. “Though there is no set standard or average amount of fuel to contract, it’s important for fleet owners not to overpromise to the supplier,” Mossman said.
While there are no guarantees a fleet will save money per gallon over the course of the contract, you’ll want to negotiate a below-market price. Start with market indices like Platts, OPIS, or Argus.
How much does a fuel contract save you?
“Indexed-based fuel contracts can result in significant financial savings, regardless of whether prices are rising or falling. By establishing a fuel contract, fleets can expect to save approximately two to four cents per gallon.
