Caution over knee jerk fuel price fixing
March 1st 2011 Energy consultancy M&C Energy Group has warned businesses looking to mitigate against increased fuel charges to think carefully before committing to fixed price deals.
The firm says it has seen an increase in the number of brokers and suppliers offering fixed price deals that are often higher than the market tariff.
M&C believes that while fixed pricing has its place, it must form part of an overall strategic approach to fuel purchasing.
George Potter, M&C’s head of fuels said: “Fuel prices have rising phases and falling phases and a good adviser will work with their client to ensure they benefit from either move.
Fixing now when prices are high will effectively lock organisations into high prices giving them no opportunity to benefit when prices fall.
“Understanding the level of risk and developing a strategy to achieve the desired outcome will deliver the greatest commercial benefits.” More articles from Handling & Storage Solutions: | 
