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Shipley Energy provides procurement services for many types of energy, including natural gas, electricity, and the focus of this article: fuels and propane. Our team’s energy experts are here to guide you through the process of choosing a product, tank, delivery schedule, and plan that best fits your organization’s needs.
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When we talk about fuel procurement, we are discussing truck-delivered fuel products such as diesel, propane, gasoline, heating oil, or kerosene which are different from the utility delivered products that arrive at your place of business on a pipeline or wire like natural gas & electricity respectively. This article is a guide to purchasing fuel for your business –
Did you know that Shipley has been delivering fuel since 1929?!
Every commercial customer who reaches out is assigned a designated Shipley Energy account manager who will be available every step of the way to guide you through the process of choosing a fuel plan that is correct for your organization. During your initial call or meeting, you may expect to answer some of the following questions, depending on the fuel type you are looking for.
By asking these questions our account managers can quickly formulate a plan that best suits your organization’s needs. We understand that every business operates differently, and one shoe does not fit all when it comes to energy.
Your account manager will compile the data and begin assessing and creating a fuel pricing and delivery plan tailored to your needs.
Typically, we can have a price ready for you on the same day, but we may require extra time if there are unique circumstances. We custom price based on volume, distance from the nearest terminal, delivery requirements, etc.
Once your account manager has price offers ready, they will reach out to schedule time to run through these options and discuss the plan, long-term strategy, and any modifications.
If you decide to move forward, your account manager will walk you through the credit application process so that we may establish payment terms for your approval prior to making the first delivery. Once credit has been established and approved, your account manager will work with you to set up a tank if needed and establish a delivery schedule that best suits your needs.
Don’t worry–your account manager won’t leave you hanging. Shipley Energy will actively monitor your account and check in following your first delivery, then with weekly market updates, quarterly check-ins, or even just once per year if that is your preference. We always make sure pricing, taxes, and supplier charges are accurate. If you have any questions or concerns, you can also contact your account manager for support.
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Shipley Energy provides fuel products for businesses through two different groups – our commercial and wholesale teams. The difference in group you will work with is based on the volume of fuel you need to receive in a single delivery, along with the service area your business is in. Because of the volume of larger deliveries, our wholesale team has a broader geographical reach – read on to find out more.
Our commercial team handles most deliveries for businesses with single-delivery volume of 5,000 gallons or less. Frequency of delivery can be controlled by size and number of tanks at your location.
Our wholesale team handles purchasing for businesses who can take deliveries of 5,500 gallons of fuel or greater. Our internal transportation team handles deliveries, streamlining operations for our customers.
Shipley Energy has a vast supply network and strong delivery team:
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This is the most typical type of fuel purchasing where you buy your fuel at the “spot price” which is the current market rate. It allows for short-term flexibility as it is a contract just for the fuel you are purchasing today.
A fixed price contract for fuel allows your business to lock in a per gallon price for a set period of time, most typically 12 months. These contracts are usage-based, with a greater volume of fuel usage typically yielding a better price. Fixed price contracts are great for inflationary markets.
This type of contract sets the upper limit of the price your business will pay for a gallon of fuel – the “cap” that the price will not exceed. However, if the market price of fuel falls below the capped price your business will benefit by paying the lesser price per gallon. These contracts usually are limited to a 12-month term and are great for more volatile markets.
A margin differential contract is great for larger users of fuels. This type of contract fixes your price to a known spot price like Mont Belvieu for propane and provides transparency in what you’re paying on top of the cost of fuel itself. The differential is guaranteed for the length of the contract and typically has a minimum usage threshold that needs to be met.
One-size does not fit all when it comes to fuel procurement. At the start of any engagement our team explores the questions and options listed above so we can tailor a fuel plan and contract to your business. If you are unfamiliar with the options above, getting in touch with an energy expert via call, video chat, or email, is a great way to find and explore new options of fuel purchasing and convenience for your business.
E&B Transportation is a fourth-generation company that has been operating for 75 years in Dover, Pennsylvania. They were experiencing maintenance issues and high operational costs with their diesel busses. To mitigate these concerns, they partnered with Shipley Energy to transition their school busses from diesel fuel to propane. Shipley Energy aided E&B Transportation through the transition by supplying consistent propane deliveries to ensure their bus fleets remained fueled. This transition improved the reliability of the busses and contributed to a cleaner environment for the community.
