Diesel fuel hedging

The single-most important financial exposure facing diesel fuel consumers and suppliers today is the diesel price volatility.

The volatility can be managed. It is possible to control the fuel budget even if the diesel price fluctuates; the solution is hedging your diesel fuel price.

Diesel fuel hedging definition - what is Diesel fuel hedging?

Diesel fuel Hedging is a contractual tool used to reduce your exposure to volatile and potentially rising fuel prices. Fuel hedging allows companies to establish a fixed or capped cost, via a commodity swap or option by entering in to hedging contracts.

Hedging your diesel fuel price can:

  • Close the gab between market risks and company profile
  • Lock in a cost structure that suits your financial situation
  • Gain a pro-active strategy for budget protection

Our extensive financial and oil market know-how can help you protect your company margins.

Step 1: Identifying goals

Your oil risk manager will start by working with you to gain an understanding of where you are exposed to fuel price fluctuations.

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