5 tips to get the best spot fuel price for your farm
Did you know there's typically a 5-10% spread in spot fuel prices at any given time?
It's one of the biggest costs on a modern farm, yet many farmers underestimate the savings that can be found here. Try these 5 tips to make sure you’re getting the best fuel price for your farm.
1. Get relevant quotes
Some suppliers will send you a daily fuel price each morning, but don’t just take this price as a given. Tell them what you need, what volume, and when you need it by, then let them give you a more relevant quote based on your actual needs. With a clear view of demand, suppliers can plan their logistics more efficiently and cut costs. These savings can be passed on to you.
2. Shop around
When you’re getting quotes, don’t stop at the one supplier - get as many quotes as you can! Fuel prices vary a lot according to the market price, a supplier's stock levels and what price they bought the fuel at, how much it will cost them to deliver to you, and even how busy they are at the time. Farms using Yagro regularly see price spreads of 5-10% on Red Diesel and Kerosene. By comparing a range of quotes, you’ll ensure you’re getting the best possible price at that moment in time.
3. Be informed on trends
Keep an eye on farm gate fuel prices and on the Brent Crude Index to monitor the price of oil. Oil price changes can give you an indication of whether the local price is likely to move up or down in the short term, and you might still be able to grab a bargain from a supplier with cheaper stocks. But be very cautious when it comes to placing longer term bets on the oil price, you're likely to lose just as much as you win!
Check out our latest 3 month Red Diesel price index, which is a good place to start.
4. Help suppliers out
Last minute fuel orders are expensive for suppliers as they have to rearrange very complex logistics operations to accommodate. On the other hand, ordering too far in advance makes it difficult for suppliers to price as they need a firm market price to base it on. Ideally give 2-5 days’ notice before you require delivery. This will ensure suppliers can fulfil your request and you don’t run dry, and will give them sufficient time to plan effectively and give you their best price.
5. Be accurate
One of suppliers’ biggest bugbears is that when they arrive on farm, there isn’t enough space in the tank to deliver the full fuel order. Being accurate with your needs will help reduce supplier costs and these savings can be passed on to you. The more precise you are, the more efficient suppliers can be. With greater efficiency comes more competitive prices.
Following these five tips will help any farm cut its fuel bill. For the quickest and easiest way to implement these steps, why not try Yagro? In a few clicks you can send requests to a range of leading suppliers, compare their quotes and place your order. Suppliers generally quote back within 5-10 minutes, so you can sit back and relax, knowing you’re getting the best deal for your farm.