An effective price risk management policy forms an intricate part of any fuel procurement strategy.
We have extensive experience of working with clients to develop an appropriate strategy which addresses both their operational requirements and the potential risks to their business in relation to fuel price volatility.
Hedging allows you to minimise your exposure to fluctuations in the wholesale price of fuel by implementing a financial instrument with a third party hedge provider, or a fixed price via your physical supply contract.
You agree prices for a specified period of time with a hedge provider, essentially transferring your risk onto them, resulting in budget certainty for your business. There are many types of fuel price hedge structures each having their benefits and suitability for companies with different requirements and different attitudes to risk.
There are many types of fuel price hedge structures each having their benefits and suitability for companies with different requirements and different attitudes towards risk.
In order to assist you in arranging a fuel price hedge we would:
Once your hedge is in place, we can then support you with the monitoring of its performance and the validation of your monthly settlement statements.
The answer is as often as you require. It is not linked to the physical supply of your fuel but looks simply to manage your future price risk exposure. We will help you monitor the market and when the price reaches your financial targets we will assist you with the conclusion of any resultant trades.
If you would like more information please get in touch.
Case study explaining how FPA Consulting helped Associated British Ports review and agree fuel contracts at its 21 ports located across the UK.
