Can we control price volatility?

Journal Article · Sat Feb 01 04:00:00 EST 1997 · Fueloil and Oil Heat with Air Conditioning

OSTI ID:458983

Hedden, B

Three steps for controlling the price volatility of petroleum products are discussed. These are: (1) speak to an expert. Oil dealers have never had more creative financial tools at our disposal for reducing price volatility. There are several experts that specialize in the industry. Let them help design a program that is best for you and your customers, (2) summer fill. Design a program to give customers incentives to fill their tanks in the late spring and early summer. If you have storage tanks, you should fill them by Labor Day. One of the major reasons prices stayed high this fall was that we filled the secondary and tertiary storage in September instead of June, and (3) talk to your suppliers. Fred Sacco, FMA-NJ`s executive vice president, has issued a warning that it is time for dealers to reexamine their relationship with their suppliers. {open_quotes}1996 may not be the season for marketers to stand back and see which terminal is posting the best number in the point-spread-per-gallon derby that has been so evident in recent heating seasons.

• OSTI ID: 458983
• Journal Information: Fueloil and Oil Heat with Air Conditioning, Journal Name: Fueloil and Oil Heat with Air Conditioning Vol. 56; ISSN 1060-9725; ISSN FOHCEU
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
HEATING OILS
MARKETERS
MARKETING
PRICES
PUBLIC RELATIONS