Founded in 1935, Central Oil and Supply is one of the largest fully integrated petroleum distributors in the United States.
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Fuel Hedging Program FAQ
How many gallons are considered
Contracts are written based on 7,000 gallons per load, however, you will be charged for the actual net
What types of fuel can be booked?
Clear Diesel, Red Dyed Off-Road Diesel, and Jet Fuel/Jet A.
What types of contracts are available?
Maximum Price Contract - The customer has contracted to pay a predetermined maximum price, but at the time of delivery, if the normal rack pricing is lower, the customer will receive the lower price.
Fixed Forward Contract - A contract between the seller and the buyer to deliver fuel during a specific delivery period at a fixed price with the only fluctuation being the basis.
Collar Contract - Provides the buyer with both a maximum price that they will pay for fuel, and also establishes a minimum price that the customer will pay during the delivery PERIOD.
When can contracts be written?
Contracts can be written at any time, however, in the past the majority of contracts were written in January and February because historically, heating oil futures are lower during these months.
Is this program guaranteed to save me money?
No! Even though our participants have seen significant savings in prior years, this program is designed to help you manage your operating costs by knowing approximately what you will be paying for fuel, and savings are not guaranteed.
What are the terms and how is billing handled?
EFT is preferred, however, standard 10-day terms are offered as well. At the time of contract execution, a 15% deposit is required, which you will deduct from your total invoice once the fuel has been delivered.
When must I take delivery of the load(s)?
COS can deliver any day during the calendar month booked, so you have an average 30-day window for delivery and 72 hours notice is required (i.e., if you need delivery by Wednesday afternoon or Thursday morning, it is highly recommended you call and place your order by Monday at noon).
What if I have a load booked and cannot hold it?
You must take delivery once under contract! We understand that unforeseen circumstances and weather conditions play a role in fuel usage for most of our customers. We recommend booking approximately 75% of your anticipated volume to be safe. You also have the option of having the load(s) delivered to another site/address and in this case there may be additional transportation/freight charges.