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A farmer's guide to buying fuel
- Details
- 19 April 2016
Liquid fuels, like diesel, are costly. Many farmers spend a six figure annual sum on fuel alone. In order to reduce the annual cost of fuel, it is often advantageous to bulk buy fuel. With that in mind, here is a quick fuel buying guide for farmers.
Buying for the season
Plan ahead for the season to come. It is important to think about your fuel requirements and try to synchronise when you buy fuel, so that you can make consistent and regular fuel purchases. This practice can help you to budget as well as know how much bulk fuel to buy. Remember that often, prices fluctuate according to season. When fuel is cheap, it may be a good idea to stock up.
The market is fickle
Trying to predict 'cheap' fuel prices is very tricky. Fuel prices are influenced by a range of factors, including the strength of the Australian dollar, supply and demand factors like conflict or GDP growth, and government taxes. To put it simply, the fuel market is very complex, so even if you buy when the price seems inexpensive, there is no telling if the price will subsequently increase or decrease. Rather than trying to predict the market, it is better to budget for contingencies and increased fuel prices, so then when the prices do fall, you will only increase your profits.
Management
If you want to keep a cap on your fuel prices, it is essential that you maintain and manage your stores. Your infrastructure and tanks will require regular maintenance to ensure your fuel says clean. Additionally, managing your records will ensure you stay on top of your finances. If you are in a particularly rural or remote location, you may require specialist services such as fixed tank refuelling sites, on-site refuelling or bulk fuel storage tanks.
Secure a supplier
It is essential that you secure a reliable supplier that always provides good quality fuel. The cleanliness of your diesel is important; if your fuel is not of a high quality, it can reduce your engine life span as well as reduce its efficiency. If you are looking for a reliable supplier with reasonable prices, contact Bulk Fuel Australia and enquire about our wholesale fuel prices.