Fuel Price Protection
Fuel price protection involves locking in or capping fuel prices for up to an indefinite time period. Fuel price protection may be offered by retailers to customers within their service areas and in cooperation with retailers in other service areas.
Price Locks
Customers may lock in fuel prices for up to an indefinite time period on gallons they specify. The fuel retailer specifies the lock prices.
To participate, depending on their credit-worthiness, customers pay from a nominal fee to the full cost of the price lock (like a pre-paid phone card).
Price Caps
Customers may cap (or guarantee) retail fuel prices for up to an indefinite time period on gallons they specify. The fuel retailer specifies the cap prices.
To participate, customers pay a one-time fee or premium for price caps.
Implementation
Fuel price protection may be offered by any retailer with gasoline or diesel stations across America -- from convenience store chains to major oil companies. Price protection may be structured to increase store traffic and customer loyalty, but the primary benefits are highers fuel margins & sales -- and happy customers.
Blog
You may learn more about fuel price protection, price relationships, and price locks & price caps by visiting the F3P Blog.