February 16, 2015

LOCK in low’ is the message we're giving to farmers as oil prices continue to tumble.

We have launched the bulk fuel forward purchase initiative early this year, enabling farmers and other fuel-dependent businesses to benefit from fuel savings currently available.

Rix is offering customers the chance to purchase up to six months’ supply of gas oil, ultra-low sulphur diesel, Superheat 35 or kerosene at one price.

The company will then store the fuel free of charge for up to six months, delivering it as and when the customer requires.

Duncan Lambert, director of Rix Petroleum Hull, said the company normally waited until later in the year to launch its bulk forward planning programme, but decided to bring it forward this year to help customers benefit from the drop in the market.

He said: “With the price of oil currently so low we wanted to find a way for our customers to benefit not just in the short term, but in the medium term as well. Most of our customers, certainly farmers and hauliers, buy in bulk so we decided if we locked prices in now they will pay the same price for half a years’ worth of fuel.

The initiative applies for purchases of 5,000 litres or above only and customers can request deliveries of any size as and when they need it.

At the end of six months any remaining fuel will be subject to a storage charge or Rix Petroleum will buy it back at an agreed price.

Mr Lambert added by taking advantage of forward purchase, farmers and other fuel-dependent businesses could make significant savings on their fuel bill for 2015.

“The market is currently at its lowest for a very long time and we have put this in place to enable businesses to take advantage of that,” he said.

“My advice would be to lock in low now as that will protect you against any price hikes over the coming months.”

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