Offer to Purchase Contract: Manage Your Fuel Price Risk

Feb 01, 2021

When your business is powered by bulk refined fuels, such as farming, construction or trucking, the cost of fuel can make or break profitability. The best fuel prices are negotiated far in advance through fuel contracts. Manage your fuel price risk by starting with an Offer to Purchase contract from United Cooperative. An Offer to Purchase contract helps manage the ups and downs of the fuel market and links your fuel price need directly to the world market.

You plan and select a target price for your fuel, including Cenex Premium Diesel and Cenex Top Tier Gasoline,  and when the market hits that price, United Cooperative contracts your fuel for you. Keep in mind, market dips occur more frequently overnight. For your business to take advantage of those dips in the market, the offer to purchase contract can provide a staggered approach to manage your risk any hour, any day, all year long.

Don’t know how much to contract? When considering a contract, think of 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. Don’t have a lot of on-site storage? We will be happy to store some of your gallons for you until you need it. Don’t want to be rushed into a decision like other contracts? Then an Offer to Purchase contract is for you! Learn more from a United Cooperative energy sales specialist, call 800-924-2991 today.


Communications Department

Filed Under: EnergyFuel