Fuel Prices

[troon8]

I'm for the simple, easy solution - DCI opens up its own drilling, refinery, and distribution buisness. C'mon, how hard could it be?

[SkyRyder_FMM]

Is there perhaps a way to buy up-front a certian amount of fuel, say 15k gallons, for a set price. It would have to be from a supplier that has filling stations all along the tour route. Than, as the summer goes, the corps could fill up as the go, and not have to pay at the time (because they paid in advance) up to the 15k gallon point. If prices g oup, it is a good deal. If they go down, well, thati s a fact of life on the speculation market.

At least, the corps would know up-front what they would pay for fuel.

A side thought on this - whan a corps leases busses is fuel a part of the lease?

When you lease busses, fuel can be included, it can be excluded, or it can be included up to a fixed price ceiling, with additional payments to be made if and when fuel crosses the ceiling.

There is a fuel hedging partnership that many corps participate in. However, all they can do is lock in prices from here on out. The size of the partnership is not large enough to hedge out mutliple years. As a result, the run up in price since last season is essentially the starting point for the hedge. You can hedge further increases, but that's about it.