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Case Study: Petroleum Jobber

Customer is a mid-sized petroleum distribution company that distributes diesel, heating oil and gasoline and owns multiple cardlock stations.

Challenge

Customer needs to buy fuel at competitive prices in a volatile market in order to offer pricing programs to its customers and compete with large, regional wholesalers and hypermarketers. Customer also faces the challenge of securing supply when the market tightens.

Solution

Guttman Energy worked closely to identify the customer’s needs and implemented tailored strategies involving multiple pricing programs, including NYMEX differentials, Platts deals, fixed prices, trigger differentials and in-tank deals.

Depending on market conditions, various programs were implemented to achieve the objective of putting the customer on a level playing field with larger competitors.

Benefits

Customer successfully competes with much larger competitors because of access to competitive daily prices and options beyond typical rack buying. When markets tighten, customer has the security of assured supply with the added benefit of economic advantages at times of year when demand picks up.

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