Lock in price of Diesel?

Do owner operators or fleet owners lock in the price of their diesel on a monthly or yearly basis? I know that large corporations usually do, but am curious if it is done on a smaller scale.

 

I never heard of it being done. They get fuel discount from truck stop chains. They also have Fuel Surcharge. If they have contacted with a shipper. They add a Fuel Surcharge into the contract. So diesel could be $5 a gallon and the shipper just pays more to move the freight.

 

I don't see why not.

If you say are FFE and wish to purchase 100,00 gallons of fuel in total for physical delivery to your trucks at a point of sale of the seller be it a ... Union 76 Truckstop (Let's keep this simple, there are thousands upon thousands of fuel dealers around the US that can fill a a big rig at a good price, maybe against Diesel spot price that morning which determines retail with taxes, markup percentage (Profit) and for some stations a difference price for credit charges that might exceed 3 to 5% on top of your total purchasing. Some of my stores (That I do business with) have been imposing 5% flat for any credit card bill paid by that method above 5000.00 car repair and 3% above 3000.00 for car repair and 2.5% up to 3000.00 car repairs.



When you wave a batch of 100's sparkling golden as it scatters on their greasy desk caught in the sunbeam of the morning, they weep with gratitude and such joy as might one feels after feeling water after 10 days wandering a land that did not have good water.

They will give you a little something in way of discounts and they will be showing their gratitude for not making their accountaint's lives a burning hell that just got hotter by your insistent in lousing credit-cards. If you turn out to be a mr Big raining money on their rusted out and desperate shop and they do a good job?> Take the owner out for a meal, explain to this owner you are considering some life changing decisions for them and you and those what work for you considering the amount of sick tractor trailers needing TLC.

TLC wont be found in the antisocial hardass bored beyond reason with the same pricing is too high BS spiel. What you will find TLC is if you take a moment to actually ask how the mechanic is going and if they wipe a tear because they are not sure which way the dentist must go today then that is the time to quietly take care of that dentist bill. Once they find out that you took their stress away they are not beholding to you. But will bend over backwards to take care of your critically ill tractor trailer on a sunday night when 6000 is on the line for a 8 am monday arrival 400 miles still to go... Everyone but you will get the generic piss off when they call asking for help. But you kind sir is about to understand what happens to good people who makes others feel they can dare to dream a little at work again.

 

walmart buys fuel everyday. they have a guy that buys on the cheapest price. its always a last minute thing

 

Yes I believe many do but it's more for local operations where they are buying fuel from the same supplier.

 

I have bought X number of gallons per month at a couple of stops from one chain. Only works if you run regular routes.

 

I had my own truck before. TA/Petro have a program called Cost +. They sell their fuel for the same price they pay for it at the fuel terminal. The Plus/+ part is they only charge you 3-4 cents per gallon to buy it or pump it into your truck. So the price can change every day but you paying the lowest price possible. Love's and Pilot all sell their fuel with a discount to the trucking companies already. It can be 15-20 cent per gallon cheaper then the cash price you see on the sign.

 

I'm on a cost+.01 FJ/Pilot. But all programs that are cost+ is after the markup for rack fees and transportation. So they still make a larger profit than the +.

 

Stevens Transport out of Dallas, a fleet of about 2,500 drivers, has different fuel prices every 1-3 days. I used to call their fuel department regularly for fuel prices. Maybe bigger fleets can lock in fuel prices for the month.

I personally use NASTC for fuel discounts. Fuel prices change almost daily.

 

Even ther big corps don't get it locked in like that. The market is way too volatile for oil companies to agree to long term pricing. The pride lf crude changes way too rapidly for any sort of fixed priced contract.

What is common is cost plus pricing. An example of this would be agreeing to a contract outside with pilot flying j at their cost plus 4 cents.