Diesel is the fuel of economic growth both domestically and abroad. The price of diesel is influenced by many factors beyond U.S. supply and demand, including everything from geopolitical issues to weather events. The good news is you can control costs, protect profit margins and grow your business by working with POWERHOUSE.
Do you want to control profit margins and sell more gallons? Are you currently shipping barrels (or want to ship) by pipeline, barge or railcar? Do you have storage and are you maximizing its value? Could you grow your business by offering fixed prices or capped prices to end users such as municipalities or commercial/industrial buyers? POWERHOUSE understands your business. We have been helping wholesalers grow their gallons and protect precious profit margins for over 30 years. It does not matter if you are new to hedging or an experienced trader, POWERHOUSE can help you buy smarter and sell smarter.
The swings in your retail profit margins can be substantial. There are times when wholesale prices are much lower than the retail price and life is good. Other times, it is hard to make a profit selling gallons at the pump. POWERHOUSE can help you take the variability out of your retail margins. There are multiple hedging strategies for the retailer of diesel. POWERHOUSE will help you design and execute a hedging program for your business and risk. We can analyze your retail margin risk and help you establish retail margin protections at times when you would expect to feel your margins squeezed.
Diesel fuel is a big budget item, typically running right behind labor costs. An increase in price can put a large dent in profit margins or make you less competitive.
Many diesel buyers budget for the cost of fuel but do nothing to ensure that the budget will be met. POWERHOUSE will help you design and implement a hedging strategy to get your fuel budget under control.
Some companies opt for surcharges related to fuel price increases. The problem is that surcharges may not cover risk completely for various reasons: companies may face pushback from customers who don’t want to pay extra, competitors may not charge surcharges in order to grow market share or the surcharge amount may not keep up with what must be paid to purchase fuel. Let POWERHOUSE show you how companies have gained market share through hedging.
Click here to set up a time for a phone call with a Powerhouse team member. Or give us a call directly at 202.333.5380.