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Advantages of Buying Wholesale Fuel vs. Retail Fuel

Date:29-04-2022 | By: Redlines Diesel Trading

Commercial industries rely heavily on the productive hours put in by their employees to become profitable year on year. The time wasted at retail outlets for fueling exponentially increases with the increase in fleet size. The cost to the company increases even further if overtime has to be paid to ensure the client's requirements are met on time. Bulk fueling is the solution to this problem. Bulk fuelling is especially beneficial for businesses whose operations rely heavily on uninterrupted gasoline supply, such as emergency response vehicles for government or utility fleets. Bulk tanks may also be appropriate for fleets that require flexible on-site fuelling choices, such as handling heavy machines at remote job sites. So let us understand the Advantages of Buying Wholesale Fuel vs. Retail Fuel


Wholesale fuel supply

Wholesale or Bulk fuel is any fuel purchased from a wholesale fuel source rather than a retail station. The wholesale price of fuel is significantly lower than the retail price. As with any wholesale product, wholesale diesel fuel provided by distributors is often sold to retailers, who then sell the fuel to customers for final usage. However, some wholesale gasoline suppliers also provide fuel at wholesale pricing to industrial and government entities.


Retail fuel supply

The fuel retailing sector includes businesses that sell vehicle gasoline or lubricating oils at retail locations such as service stations, petrol stations, and others. Furthermore, in order to attract a greater number of consumers, enterprises in this field offer services such as vehicle washing, convenience shop items, and general automobile check-ups as a supplement to fuel sales, produce more money, and grow their customer base. Retail fuelling is often the most cost-effective option for the widest range of fleets, whether geographically constrained or dispersed over numerous stations. Sites that are open 24 hours a day, seven days a week might be more challenging to manage and need more logistical organization and labor.

Advantages of Buying Wholesale Fuel vs. Retail Fuel

1. Perpetual Availability

An annual contract with bulk fuel suppliers is ideal if you want a regular supply of the same product over an extended period of time. When you buy bulk diesel, you always know what you're receiving, which is perfect for your specific machinery. Moreover, one can avoid the last-minute rush in case of an emergency as well. Operations getting interrupted due to lack of fuel availability is the last thing organizations need.

2. Consistent Pricing

Fuel prices tend to fluctuate throughout the year due to many reasons. When you lock in a contract, you get consistent pricing. Price certainty is ideal for people who would prefer to budget and preparation than surf the market's waves. This can also be useful for contemplating the annual budget for your expansion plans.

3. Saving Time

You don't have to do anything after you've agreed on a price and know when and where your next supply will arrive. You don't need to make timely phone calls to study the greatest pricing, and you don't need to attend meetings to attempt to haggle for reductions since you already have an amazing price that you don't need to worry about. This is on top of the fact that your fleets are on the road rather than being stuck in the long queue at the retail fuel outlet.

4. Continual Supply

A bulk fuel contract is consistent as well as consistent. If the market fluctuated, resulting in a lack of supply, you would never have to worry about running out of gasoline. You'd get it at your contract price, but others who opt to trade on the spot market would get it at the price determined by market demand at the moment. Worrying about fuel availability would be a thing of the past.

5. Prevent Price Inversions

Price inversion is uncommon yet costly. Price inversion occurs when an unbranded supply of gasoline falls below a certain threshold and becomes excessively expensive on the market. Because of the shortage, the price of all branded and unbranded fuel has skyrocketed. With the contract locked in, price inversions will not affect your business.

However, buying fuel in bulk may not be suitable for everybody. Bulk tanks are mainly required for various activities, such as emergency or first-responder vehicles. This convenience, however, comes at a cost. Installing, running, and maintaining bulk tanks is significantly more expensive than paying for fuel at the pump for a small fleet. Besides, the storage tanks for bulk fuel have stringent regulatory requirements set by the UAE government to ensure safe and efficient storage which needs to be maintained at all times. 

Contact Redlines Diesel Trading for the Best Diesel Fuel Solutions

Your search for the best Fuel trading companies in UAE ends here. Redlines Diesel trading is one of the leading diesel trading companies with a niche for delivering quality fuel all across the UAE at very competitive prices. Ordering bulk fuel from Redlines will ensure savings in time, money, and effort. 

So what are you waiting for? Contact us today

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