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Introducing Price Risk Management from Watson Fuels
The fluctuating cost of fuel puts pressure on margins, makes budgeting challenging, and can significantly hamper the realisation of your business plans. With over 65 years' experience of delivering fuel to the industry, Watson Fuels understands how the fluctuating nature of the market can impact your business. That's why we are excited about introducing our range of price risk management products.
With our simple, effective price risk management solutions, we can help you place your business on a fuel agreement that matches your ongoing needs, giving you greater control over your future fuel spending.
Fixed Forward Pricing
Our Fixed Forward Pricing (FFP) option enables you to purchase a fixed monthly volume of fuel, at a fixed price, for a specified future period (typically up to one year).
Capped Maximum Pricing
With our capped pricing option, we'll set an agreed maximum per-litre price for the duration of your agreement, with no fixed minimum price. If the market spot price falls below the capped maximum price, you pay the spot price during the whole period of your agreement. If the market spot price rises above the capped price, you only pay the agreed maximum price during your agreement. Please note that all Capped Maximum Pricing contracts are subject to a pre-agreed per-litre fee for the cap.
Fixed forward pricing
Key features
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Known fuel cost removes uncertainty and aids the budgeting processes
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Volume can be delivered across multiple delivery locations
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Ability to roll volume forward (subject to price agreement)
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'Take or pay' will apply. Once committed to lifting a specified volume, you must either take the agreed volume or cover the cost of the product.
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Capped maximum pricing
Key features
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Known maximum capped formula price
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No minimum price
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Capped price can apply to volume delivered across multiple locations
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'Take or pay' will apply. Once committed to lifting a specified volume, you must either take the agreed volume or cover the cost of the capping fees for the product.
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