Pricing options to assist our customers

U. S. Oil offers several different options for contracting your fuel needs. Below are the two most common options.
 
OPTION 1 – Fixed Forward (FF) Contracts
  1. Contract requires a minimum of 42,000 gross gallons.
  2. The customer will determine the contract frame.
  3. $.10-.20 prepayment is required on all gallons. The balance will be billed on normal business terms.
  4. Product must be pulled ratable over the contract period. For example: If you contract 60,000 gallons over 3 months, you must pull 20,000 gallons per month.
  5. Price is given per month, or cost-averaged over the contracted period,
  6. If the product is not pulled within the contracted period, the customer will be billed in full and a storage fee will be assessed.

OPTION 2 – Index-Based Contracts
  1. Minimum contract period is one year.
  2. Gallons must be pulled ratable.
  3. Contracts can be based off various indexes: OPIS, Platts, or AXXIS.
  4. The daily price is a predetermined markup over the respective index.
  5. Contract terms vary based on customer.
  6. If the product is not pulled within the contract period, the customer will be assessed a shortfall penalty.