Even though oil prices have been falling in recent months, oil can still be an expensive part of a freight company's business expenses. Purchasing oil in bulk at the lowest price possible is the best way to slash business operating costs.
Watch Market Movements
If you want to purchase oil at the lowest price possible, you will need to purchase oil in bulk while watching market movements. The value of oil fluctuates, so you will need to be able to predict when the oil prices have reached the bottom. Work with wholesalers to purchase as much oil as possible before the demand increases. Do not wait until your tanks are almost empty before having the tank refilled.
Determine How Much Oil to Store
By purchasing oil in bulk, you will need to have an effective way of storing it. You will need to determine how much oil you will store so you can purchase a suitably-sized tank. Fortunately, you usually do not have to receive all of the oil all at once, but you can instead have it delivered after paying a fixed price. To avoid running out of fuel early, you will need to track how much fuel you typically use per month. That way, you can have the right amount of fuel delivered to you at the right moment and minimize the amount of fuel you lose through evaporation.
Get a 12 Month Fixed Price Tariff
To ensure that you get a specific price, consider getting a 12-month fixed price tariff. Even though the price of the tariff is usually higher, you are protected from a sudden spike in oil prices for 12 months.
Know the Oil Prices Beforehand
Before purchasing the oil, make sure you research the current oil prices. The wholesale supplier will probably charge more than the value of the oil to earn a profit, but the price should be close to the current oil price.
Purchase Near the End of the Season
While it can vary, the best time to purchase fuel is usually at the season's end. This is when wholesale fuel companies need to empty their tanks, especially companies that purchased too much for the particular season.
Don't Be Afraid to Negotiate
Oil companies are haggling businesses, so you can usually negotiate down the price of your order. One approach is to find another company that has a lower price and ask the current company you're negotiating with of whether they can beat that price. Most companies have some room to come down in order to make a sale. Talk to a company like Small & Sons Oil Dist Co.Share