Would it help you control costs to know your exact fuel price for a future delivery date? With Petro Air as both your fuel supplier and partner for credit and risk, you can take full advantage of our unique ability to offer fixed-price delivery, or physical fuel hedging.

Fixed-price delivery is a very effective cost management strategy, used extensively by Petro Air customers. With fixed-price delivery, you will know:

  • exactly what volume of fuel will be delivered to you
     
  • on an exact future date
     
  • at a price that is locked in today

How is this possible? Fixed-price delivery links financial hedging with physical fuel delivery. Because Petro Air is both a fuel supplier and finance company, we are uniquely able to offer this strategy to our customers. Banks cannot offer this type of hedge because they are not fuel suppliers, and major brand oil companies generally will not make this offer to customers with small volume needs.

Here are key points about Petro Air’s fixed-price delivery:

  • Price risk management strategy
     
  • Linked with physical supply contracts (“embedded”)
     
  • Delivery date can be 2 to 12 months (or beyond, depending on the need)
     
  • Contracts are credit-dependent, but we are willing to customize
     
  • Requires a volume commitment
     
  • Enables and obligates fuel purchase
     
  • Very easy to administer

Our risk management experts will explain all details of the program and provide training if physical fuel hedging is a new strategy for you. Please contact us today!