For many companies in charge of a facility or fleet, fuel is one of the most significant overhead expenses. Bulk fuel delivery can be advantageous when your company must regularly fill numerous vehicles or machines. Depending on your fuel needs, you may benefit from buying in large quantities.
What Are the Advantages of Bulk Fuel Delivery?
Bulk fuel delivery companies typically sell to retailers who, in turn, supply consumers with the fuel used in their fleets or factory equipment. Companies can cut out the middleman by purchasing directly from a bulk fuel delivery service instead of retail fuel stations.
Companies that move to bulk fuel delivery can avoid the retail fuel markup price and benefit from the following five advantages.
1. Increased Efficiency
The on-site storage tank for your bulk supply makes refueling your fleet fast and efficient. You can confidently plan for and keep to a daily production schedule without getting off track. When you use retail fuel, you must dedicate company time and expenses toward frequent refueling. Whether you send vehicles to get fuel before delivery or stop at various points along the route, the congested traffic near retail fuel suppliers can significantly slow your operations.
Since you can fuel vehicles straight from the storage tank, you can dispatch your fleet to delivery destinations on the fastest, most efficient routes. Your workers can focus on the job rather than the fuel gauge, allowing deliveries to reach more destinations in a given day or week. The on-site storage tank ensures a quick refueling process, so your facility runs according to schedule whether you operate daily, nightly or 24/7.
2. Higher Fuel Quality
If your company uses the fuel as it gets delivered, you can benefit from higher-quality fuel in your vehicles or machines. Bulk fuel supplies are usually higher quality than retail fuel since you can maintain a reasonable limit based on the amount of fuel you use and its storage life. When you get retail fuel, it is challenging to know the fuel’s quality. Remotely monitor the bulk fuel supply inside the on-site storage tank to provide helpful insights into how you use fuel. Regulate what goes into your company fleet with an on-site supply of fresh fuel.
You don’t want to store fuel for too long, as poor fuel quality leads to more engine deposits and more problems for your company. Vehicles and factory equipment that consistently use retail fuel may have higher failure risk and maintenance costs. Lower fuel quality leads to more emissions, less fuel economy and decreased performance. With bulk fuel delivery, it’s easy to determine how much fuel you can reasonably store to avoid going past the storage life.
3. Reliability and Accessibility
Bulk fuel delivery companies provide the convenience of anytime access to a reliable fuel supply. When it’s time to refuel, connect the machine or vehicle to your on-site storage tank and fill up. There is no variation in the fuel’s cost and better quality control.
When you use retail fuel for your fleet, the price can fluctuate based on variables like the location, day and supplier. This variation makes it challenging to set an accurate budget. Bulk fuel takes the guesswork out of budgeting your most essential expense, streamlining the price and payment frequency across all your vehicles or machines.
Gain control over your fuel costs with bulk delivery. Access to yearly budgets makes your accounts more manageable since you can determine, predict and calculate future costs with more reliability. Your bulk fuel delivery service will handle on-site tank refills approximately once each month or as often as you need them. That way, you can rely on accurate and reliable billing for each payment cycle.
4. Decreased Downtime
Instant access to bulk fuel can decrease your company’s downtime. Connect your fleet to the storage tank and refuel vehicles on-site without any delays or hold-ups. Refueling factory equipment becomes quick and efficient, so production can remain consistent with your schedule.
Refueling vehicles at a service station is inconvenient and time-consuming. Your workers could be spending that time on profit-producing work instead, allowing your business to reach more delivery destinations or achieve a higher production rate. Switch to a bulk fuel supply and ditch the unnecessary drives to retail fuel stations.
5. Improved Productivity
Just as instant fuel access leads to decreased downtime, a reliable delivery schedule can increase your company’s productivity. You can fuel your facility and fleet on-site at any time. Since you’ll no longer need to fuel up during delivery or mid-production, your facility can maintain productivity without any timeouts. Dispatch vehicles directly to their delivery destination on the quickest routes possible.
Is Buying Bulk Fuel Cheaper?
Buying bulk fuel is a cost-effective option for many companies. While bulk fuel delivery generally has a higher upfront cost, it’s still a portion of the amount you’d pay for the same fuel quantity purchased at the retail markup price. Since you must consistently pay the retail markup and applicable taxes, retail fuel can become considerably more expensive over an entire year.
Companies with an on-site storage tank effectively cut out the middleman and avoid the marked-up retail price. Foster Fuels can install bulk plants and use local storage facilities in Virginia for your bulk fuel supply. With bulk storage tanks, you must ensure the installation remains compliant with NFPA 58 and API 2510, plus all federal, state and local standards. Proper bulk plant design and continuous maintenance help offer safe, reliable fuel distribution.
A dedicated fuel delivery company like Foster Fuels can also work with you to establish a bulk plant maintenance program to minimize downtime and help you save money. We understand the laws and requirements related to the safe storage and handling of bulk fuel, so we can help you avoid accidents and unexpected problems with your tanks.
Purchasing fuel in larger quantities is especially advantageous if you run a facility or fleet. In one week of using bulk fuel, you can expect a reduction in your spending for a single truck or machine. When multiplied across your entire fleet or facility, the profits can increase tremendously. The higher the volume of fuel you can store, the more likely you’ll lower the overall fuel expense.
Fuel costs are also easier to control when your spending is regulated across the entire facility and fleet. Different retail fuel sources lead to more variation in price, making your yearly expenses unpredictable. When you buy bulk fuel, competitive pricing can help keep your payments reasonable and consistent.
What to Consider Before Moving to Bulk Fuel
Your fuel needs will depend on several factors, including the number of equipment and vehicles, the size of the fuel tanks and the fuel storage life. You may be looking to hold gasoline, diesel, biodiesel, propane, ethanol, kerosene or other fuel sources in your on-site storage tanks. Certain fuels can cause severe problems if stored for too long, contaminating the supply and damaging the fuel system components. Determine whether your company can reasonably use the fuel as it gets delivered.
Before negotiating a contract with a bulk fuel delivery service, consider the following questions:
What are your fuel requirements?
What type of fuel do you need?
What is the fuel storage life?
How many vehicles and machines do you need to fuel?
How much fuel does your company consume each month?
Do you have the ability to store and maintain fuel quality?
Based on the fuel storage life and the amount you use, what is a reasonable buying limit?
You want to negotiate a bulk contract that protects you from price fluctuations and provides a constant fuel supply. Because the marketplace can fluctuate widely, there should also be a provision to review the contract periodically.
Partner With Foster Fuels for Bulk Fuel Delivery
Foster Fuels is a full-service fuel delivery company that provides prompt, reliable bulk fuel transportation so you can decrease downtime and increase productivity. When you place an order, we will work with you to transport your bulk fuel delivery as quickly as possible. Since 1921, we have been a profitable, family-owned company and trusted partner to our customers.