Oil Fuel Distributors in Cheltenham and Pricing Rates

by | Aug 12, 2016 | Oil and Gas

A lot of people wonder how it is that oil fuel distributors in Cheltenham can charge different rates for the same products. There are a few determinants when you are purchasing oil fuel that will affect the rate that you pay for the fuel.

The Simple Facts

A new oil distributor will do their best to keep rates low initially in a bid to bargain for their fair share of the market but as many distributors have found they cannot stay afloat for too long by under-pricing the products. They often have to shut their doors in their first couple of years of operation which of course leaves their customer base in the lurch. So you may get that super low rate but it may not be available for very long.

The Better Way to Get a Great Rate

Rates are affected by:

* The buying power of the distributor

* The efficacy of the distributor

* The commitment of the distributor

There are a few things that are out of the distributor when it comes to pricing. They cannot control how much the market price is but they can control whether or not they are willing to pass on savings to their customers. Of course the amount of oil that the distributor purchases also will determine how much they pay and in turn will affect your rate.

A Large Well-Established Distributor

One of the easiest ways to get a great rate that is consistent is to do business with a large distributor that buys a large volume of oil products. A reliable distributor that has been in the industry for a long time will be able to source the best prices.

Hobbs Bros Ltd is one of the largest distributors in the area, so you can count on them for fair, consistent rates.

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