Fuel Contracting in the Retail Space
Sep 24, 2026
Scott Richardson
Energy Division Manager
THE PRICE OF FUEL is on everyone’s mind this year. It’s been a major influence on our lives. The global market for fuel has also changed over the last few years. How do we manage what we can’t control but absolutely need?
We must start thinking differently about how we handle our fuel needs. That starts with putting a plan in place, including contracting fuel. With the addition of the Zearing fuel station in July, we want to draw attention to the fact that you can contract fuel right at Key stations.
For those producers who travel around rather than always being located near their home tanks, we’ve added the option to forward contract cardtrol diesel fuel at our locations. Both dyed diesel and road diesel can be priced on the same forward monthly fuel contract options that are available for your farm tanks, but they can be pumped at any of our 24-hour fuel stations. This helps manage some of your fleet needs. If you’re hauling mobile fuel tanks, we have dyed diesel options at several locations at prices more advantageous than filling a portable tank from a stationary tank on your farm.
Right now, we see a lot of buying at the spot price as needed. That puts you at a disadvantage, because the moment you need fuel most is the same moment everyone else needs it too. That creates huge demand, runs prices sky high, and creates supply shortages. A forward fuel contract allows you to buy fuel ahead of time, during off-peak demand, and locks in a fixed price for a single month or multiple months of delivery. Typically, it is done in three-month increments, like September to November. These types of fuel contracts usually require some kind of deposit to hold the price, which will be used to help pay for the contract as you consume it. Contracts cannot be written during the current month, only for months following.
You don’t have to contract 100 percent of your needs. Using a “layering” approach allows you to buy smaller amounts of your overall needs as the market makes dips. For example, you could cover your needs with 25 percent of the fuel bought ahead of the season and stored in fuel tanks, buy another 25 percent on contract ahead of time when the market looks right, then leave open the other 50 percent of your needs.
Fuel has been a big risk all year, and next year is an even bigger unknown. If you’re wanting to get something covered for fall, there’s still time to get a plan in place. If you’re interested in looking at options, please give us a call to set up a time with our Certified Energy Sales Specialists. We’re here to be your essential business partner.
Energy Division Manager
Managing what we can’t control
THE PRICE OF FUEL is on everyone’s mind this year. It’s been a major influence on our lives. The global market for fuel has also changed over the last few years. How do we manage what we can’t control but absolutely need?
We must start thinking differently about how we handle our fuel needs. That starts with putting a plan in place, including contracting fuel. With the addition of the Zearing fuel station in July, we want to draw attention to the fact that you can contract fuel right at Key stations.
For those producers who travel around rather than always being located near their home tanks, we’ve added the option to forward contract cardtrol diesel fuel at our locations. Both dyed diesel and road diesel can be priced on the same forward monthly fuel contract options that are available for your farm tanks, but they can be pumped at any of our 24-hour fuel stations. This helps manage some of your fleet needs. If you’re hauling mobile fuel tanks, we have dyed diesel options at several locations at prices more advantageous than filling a portable tank from a stationary tank on your farm.
Right now, we see a lot of buying at the spot price as needed. That puts you at a disadvantage, because the moment you need fuel most is the same moment everyone else needs it too. That creates huge demand, runs prices sky high, and creates supply shortages. A forward fuel contract allows you to buy fuel ahead of time, during off-peak demand, and locks in a fixed price for a single month or multiple months of delivery. Typically, it is done in three-month increments, like September to November. These types of fuel contracts usually require some kind of deposit to hold the price, which will be used to help pay for the contract as you consume it. Contracts cannot be written during the current month, only for months following.
You don’t have to contract 100 percent of your needs. Using a “layering” approach allows you to buy smaller amounts of your overall needs as the market makes dips. For example, you could cover your needs with 25 percent of the fuel bought ahead of the season and stored in fuel tanks, buy another 25 percent on contract ahead of time when the market looks right, then leave open the other 50 percent of your needs.
Fuel has been a big risk all year, and next year is an even bigger unknown. If you’re wanting to get something covered for fall, there’s still time to get a plan in place. If you’re interested in looking at options, please give us a call to set up a time with our Certified Energy Sales Specialists. We’re here to be your essential business partner.