The MFA Oil Energy Partner program is a cooperative partnership designed by MFA Oil to provide fuel supply options that meet the requirements of today's farmers. The program focuses on pricing, routing and budgeting.
PRICING
Floating Price
MFA Oil will offer #2 premium diesel fuel to the PARTNER at a “floating price,” which is calculated by adding a set margin to the average cost at the terminal.
The MFA Oil margin will be substantially lower than the standard tank truck margin and will remain constant throughout the delivery period (farming season).
The PARTNER will be able to check the terminal average at any time by accessing MFA Oil’s web site.
Contract Price
The PARTNER also may choose to lock in a fuel price for the duration of the delivery period. The contract price may be taken at the beginning of the period or at any time during the period for remaining purchases.
The contract price is updated daily and is available by phone from the local bulk plant.
ROUTING
MFA Oil will furnish 300, 500, 1,000 and 2,000-gallon tanks based on estimated fuel purchases.
Fuel products will be delivered on a route basis throughout the delivery period. All filters, nozzles, hoses and pumps will be provided at no charge.
For this program, MFA Oil will deliver only to tanks with a capacity of 3,000 gallons or less. In addition, if the PARTNER owns appropriate tanks, a 2¢ per gallon discount will apply.
During times of fuel shortages, MFA Oil will make every attempt to deliver diesel fuel to the PARTNER.
BUDGETING
The PARTNER may chose to pay for the fuel in equal monthly payments or pay from the monthly statement.
An estimate of volume and price is used to calculate total fuel expenditures. (Any anticipated lubricants and truck-delivered gasoline will be included).
In December, a final payment or a refund will make up the difference between estimated and actual expenditures.
No finance charges are assessed if payments are made on time. MFA Oil reserves the right to alter payment amount if estimated volume and price varies substantially from the actual.
ENERGY PARTNER BENEFITS
- PARTNER eliminates risk of price fluctuations incurred when purchasing large amounts of fuel at one time.
- PARTNER can choose to fix fuel price for the season at any time during season.
- MFA Oil furnishes and maintains storage tanks.
- PARTNER is relieved of fees and liabilities resulting from government regulations on tanks.
- PARTNER’s tanks are kept at a useable level at all times because they are filled on a regular route.
- PARTNER can plan expenditures more efficiently due to even-pay plan.
- Because of the efficiencies of the program, PARTNER benefits from a substantial price discount.
For more information or to become an MFA Oil Energy Partner, contact your local bulk plant.
