Q: How does a price cap work?
A: A price cap puts a ceiling on how high your price can go, but it also allows your price to drop if the market falls.
Q: Is my price cap the price I pay for each delivery?
A: No, it’s the highest you would possibly pay as long the cap is in force. Any time our delivery price is less than the cap, you pay the lower amount.
Q: Why does it cost extra for a price cap?
A: Our ability to offer fuel at a capped price is based on the purchases of fixed price futures contracts, but involves one extra, important step. To guarantee that your price won’t go above a certain price, but can also go down if market prices fall below where they were on the day we bought the fixed price contracts, we also purchase “futures options.” These cost us more per gallon, and we in turn add them to your cost, but the price protection provided by these options makes the cap work.
Q: What if I don’t want price protection?
A: You will simply pay our competitive daily rate for your fuel. We will continue to make deliveries on your regular schedule and if applicable, bill you monthly.
Q: Where do you think prices will go from here?
A: There are so many factors that affect the price of fuel—supply and demand, political events, the weather, speculation––that trying to figure out whether and when prices will go up or down is pure guesswork. Whatever happens, our pricing approach won’t change. You will always get fair and competitive pricing from us.