F.A.Q.’s

How many gallons are considered a load?

Contracts are written based on 7,000 gallons per load, however, you will be charged for the actual net gallons delivered.

What types of fuel can be booked?

Clear Diesel, Red Dyed Off-Road Diesel, and Jet Fuel/Jet A

How is pricing broken down and will it fluctuate?

The Estimated Contract Price (ECP) is primarily determined by what we pay for the Heating Oil Future (for the month following the delivery month) at the time of booking your hedging contract. We add our up-charge, transportation/freight, and Basis, which are clearly listed in the contract. The Basis is the only variable. (i.e. Heating Oil Future Price $2.95 + Up-charge .10 + Freight .0325 + Basis .10 = ECP of $3.1825)

What is basis?

Basis is the difference between the local cash price (spot at the rack) of a commodity and the price of a specific futures contract (following month) of the same commodity (for Diesel/Jet A = Heating Oil) at any given point in time. Local Cash Price – Futures Price =Basis

How much has the basis varied in the past?

The average basis in 2009 was 11 cents; the average basis in 2010 and 2011 was approximately 12.7 cents. On the date of delivery if the basis is higher than the basis written into your contract, your final price will fluctuate (increase) by that amount.

What was the average savings for your customers during last year’s program?

During 2010 the Hedging Program saved our participants a total of almost $40,000 and our average customer savings was .13 cents per gallon. During 2011 the Hedging Program saved our participants a total of almost $198,000 and our average customer savings was .35 cents per gallon. Please note: This is based on previous years’ actual results and cannot be guaranteed!

When can contracts be written?

Contracts will only be written from December 1, 2011 through February 29, 2012.

Is this program guaranteed to save me money?

No! This program is designed to help you manage your operating costs by knowing approximately what you will be paying for fuel.

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. We are also adding a 100% pre-payment option this year for contracts written in December, for our clients that would like to use this option as a tax management tool.

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.