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    • Home
    • Fuel Procurement Review
    • Our Approach
    • About
    • Fuel Procurement Answers
    • NAFPN Framework
    • Contact
  • Home
  • Fuel Procurement Review
  • Our Approach
  • About
  • Fuel Procurement Answers
  • NAFPN Framework
  • Contact

Fuel Procurement Q&A

Why are our fuel costs rising?

  Fuel costs can rise for reasons beyond the commodity market. Supply structure, transportation, geography, purchasing strategy and operating requirements can all affect what you ultimately pay. 

Are we paying a competitive fuel price?

 The invoice price alone doesn't answer that. A meaningful comparison requires understanding how your price is structured and what comparable buyers and supply options actually look like. 

Why did diesel rise when crude fell?

 Crude oil and finished fuels don't always move together. Refining conditions, inventories, regional supply and demand can cause diesel prices to behave very differently. 

Does buying more fuel mean a better price?

 Not necessarily. Volume matters, but location, delivery requirements, storage, supplier competition and purchasing structure can matter just as much. 

Is bulk delivery cheaper than cardlock?

 Sometimes. The answer depends on volume, location, storage, delivery economics and how the operation consumes fuel. The lowest posted price isn't always the lowest total cost. 

Should we use one fuel supplier?

 Supplier consolidation has advantages, but dependence on a single source can also create commercial and supply risk. 

How often should we review our fuel agreement?

 Fuel markets and operating requirements change. A contract that was competitive when signed should not automatically be assumed competitive today. 

Should we lock in fuel prices?

 Fixed pricing can reduce exposure to market movements, but it also introduces different risks. Whether it makes sense depends on the organization's objectives, timing and market conditions. 

How much can a small price difference matter?

 At commercial volumes, very little can become very large. A few cents per litre or gallon can create significant annual cost exposure. 

Can our procurement team be doing everything right and costs still rise?

 Absolutely. Rising fuel costs don't automatically indicate poor procurement. The first step is determining what is actually driving the increase. 

Does NAFPN sell fuel?

 No. NAFPN is independent. We represent fuel buyers—not suppliers—and do not receive supplier commissions. 

What does a NAFPN analysis tell us?

 It helps leadership understand the commercial, supply and operating factors affecting their fuel costs and where further action may be warranted. 

Want to understand what these factors mean to your operation?


ASSESS YOUR FUEL COST EXPOSURE

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