I don’t get into who makes the price to be honest.
How much is bunker fuel price wise currently?
Also, what does the residual left from crude oil refining sell for these days? I know it’s thick, nasty stuff.
Thank You
About ~$500 a ton for 380cst product.
If it’s IMO2020 approved fuel about ~$1200 a ton.
Your local shop is probably getting charged the delivery fee. Not the actual price of oil. Your previous price was identical to my delivery fee for SK.
It’s a way to do national account, but without the solid fixed costs. We deliver a few KPP accounts this way.
So your company has a fixed price for oil, nation wide. Whatever it is per gallon. However, delivery fees vary from region to region. It costs more to deliver product in Montana, then it does Houston - for example.
Some national accounts are buy back models. So for example, when I buy Honda oil from P66. They buy it back from me at the cost that I paid them for it. Then, they pay me a delivery fee and freight costs.
On the flip side, another way is the Ford model. Where I have a fixed cost, but Ford gives the dealers incentives to drive their price down.
In KPP’s way, they credit our account, then we charge them a delivery fee. Which, I assume that is your “bill” and corporate gets the oil bill. This way they can do separate cost accounting per location.
Several ways to do the national account model. All depends on the company and the account. Some stuff is RFQ per load. Etc.