Big businesses protect themselves against spikes in fuel prices by buying delivery contracts well in advance of when they need the gas. Now, small companies can play the same fleet fuel management game through Pricelock, an online service that pays if the pump price goes over a target you set.
So if you’re a lansdscaper, in the construction business or make deliveries –even if you use only one vehicle — this could be right for you. Here’s how it works, whether you use gasoline or diesel: You give Pricelock the number of gallons you expect to use over a certain period, pick a target price per gallon and Pricelock quotes you a fee; an example on Pricelock’s site shows an 11% fee on a 3,000-gallon coverage plan at a target of $3 a gallon. If the national average price on gas or diesel (as determined by the U.S. Department of Energy) exceeds your target in a month, Pricelock pays you the difference. If the price lands at or below your target, then you’ve paid the fee with no return. Either way, you don’t actually have to buy any fuel or show any receipts. A similar plan covers shippers against fuel surcharges by shipping companies.
Pricelock’s site has a nice set of tools to try out scenarios for rising gas prices. Salespeople are available to help you pick a fuel price protection plan. Just remember that Pricelock isn’t an oil company, it’s a financial company that uses the commodities markets to cover its bets – and it’s going to be savvier about energy prices than you over time. Still, as a way to smooth out your annual spend at the pump, Pricelock’s fee may be worth the cost of having some certainty when managing fuel for your fleet.
