Simons Petroleum Offers Fuel Protection Program
August 2008, TruckingInfo.com - Feature
Simons Petroleum, Oklahoma City, introduced the SuperKnockOut program to help reduce losses from non-recoverable fuel surcharges and provide protection against fuel price spikes.
The program is available through Simons' Pathway Network of truckstops.
"Fuel price volatility is unprecedented today," said Brad Simons, senior vice president of Simons Petroleum and president of its Pathway Network. "By capping costs and providing the ability to follow the market down if prices decline, the Super KnockOut program provides protection from daily cost increases not covered by fuel surcharges."
The purpose of the cost bands is to stabilize fleets' intra-week price volatility. Since the DOE resets only once a week, the cost band prevents their daily fuel price from exceeding the weekly DOE price.
To participate in the Super KnockOut program, fleets commit to purchasing a minimum quantity of diesel fuel monthly at any of the almost 200 Pathway Network truckstop locations. Program participants simply purchase the fuel at day-to-day prices, and cap-style cost bands protect fleets from fuel increases. As daily prices move through the cost bands, the fleet's fuel price remains stable until a maximum cost reduction is reached. Should prices continue to rise, the fleet retains the maximum benefit of the cap.
The Simons Pathway Network provides over-the-road truck fleets with a variety of proprietary programs to control volatile fuel costs.
More info: www.simonspetroleum.com