Fuel costs are one of the largest expenses for farms, fleets, and construction companies. When prices rise without warning, it can seriously impact your budget and bottom line.

A fuel contract is an agreement between you and your supplier that locks in your fuel pricing or terms for a set period. This gives your business more control over costs, even when markets are unstable.

With today’s fuel markets more volatile than ever, many farms and fleets are using fuel contracts to protect their operations. Locking in rates reduces risk, helps with planning, and ensures reliable supply when you need it most.

In this post, you’ll learn how fuel contracts work, why they matter in today’s market, and how they can benefit your business.

What Is a Fuel Contract?

A fuel contract sets pricing and supply terms between a customer and a fuel provider. It can cover diesel, gasoline, propane, or DEF. Contracts typically last from a few months to a year or more, depending on your needs.

Fixed Price vs Market Index

A fixed price contract locks in a set price per gallon, regardless of market swings. A market index contract tracks market prices but may include a cap or floor to limit risk. Each option fits different business goals.

Common Terms and Options

Most contracts define:

• Fuel type and volume
• Price structure (fixed or index-based)
• Delivery schedule (weekly, monthly, as-needed)
• Length of agreement
• Terms for renewal or adjustment

How a Contract Works with Your Fuel Deliveries

Once in place, your contract works hand-in-hand with your delivery schedule. You get reliable deliveries at the agreed price, with priority service during peak demand. This helps you plan ahead and avoid surprises.

Why Are Fuel Prices So Volatile?

Fuel prices rise and fall because of many factors. Without a contract, your business is exposed to these swings.

Market Swings

Events like storms, refinery outages, or political changes can shift fuel prices overnight. In recent years, diesel prices have spiked by 20 to 30 percent in just a few weeks.

Seasonal Demand Shifts

During planting and harvest, farms use more diesel. In winter, trucking fleets run longer hours. These seasonal cycles drive up demand and prices.

Supply Chain Risks

Fuel supply depends on pipelines, terminals, and transport. Delays at any point can limit availability and raise costs in local markets.

Global Factors

International events, oil production cuts, and currency shifts all affect fuel costs in the U.S. A change on the other side of the world can raise prices at home.

Key Benefits of Using a Fuel Contract

A fuel contract helps you manage these risks and run your business with confidence.

Budget Predictability

With locked-in pricing, you know what you will pay. This helps plan budgets and set project bids with less guesswork.

Savings

When prices spike, you save by paying your contract rate. Over time, this can protect your margins.

Reliable Supply During Peak Seasons

Fuel contracts often come with priority delivery. You won’t face shortages during busy times like harvest or construction season.

Easier Cash Flow Planning

Steady fuel pricing helps balance your cash flow. No more scrambling to cover surprise increases.

Who Should Consider a Fuel Contract?

Farms

Farms with high seasonal diesel use can protect costs during planting and harvest.

Fleets

Trucking companies that depend on diesel can stabilize expenses and plan rates with confidence.

Construction Firms

Jobsites need steady fuel to keep projects on track. A contract helps avoid budget overruns.

Aviation

Operators of crop dusters, private planes, and airstrips benefit from stable fuel pricing and supply.

Local Expertise and Trusted Service

Creed Fuels brings deep knowledge of the fuel needs across Colorado, Wyoming, Nebraska, Kansas, and New Mexico. We understand the challenges faced by farms, fleets, construction companies, and aviation operators in these regions.

Regional Knowledge

We know how weather, seasons, and local demand affect fuel use across the Plains states. That helps us deliver exactly when and where you need it.

Transparent Terms

Our contracts are clear and easy to understand. There are no hidden fees or surprises.

Flexible Delivery and Volume

Every customer is different. We offer flexible options for fuel volume and delivery schedules, so your contract fits your real-world needs.

Real Customer Success Examples

Many of our long-term customers use fuel contracts to stabilize costs and avoid disruptions. We can share examples of how this has helped farms and fleets across our region.

Should You Lock In Pricing This Year?

Signs That a Contract Will Help If fuel is one of your biggest operating costs, a contract can protect your budget. Businesses with steady fuel use and seasonal spikes benefit the most.

When a Contract Makes Sense If you are planning a large harvest, running a busy fleet, or managing major projects, now is a smart time to lock in fuel pricing. Even with market ups and downs, a contract provides peace of mind.

Fuel Contracts vs Market Pricing

Pros and Cons of Each

• Fuel Contract Pros: Predictable pricing, protection from spikes, priority supply, better cash flow planning
• Fuel Contract Cons: May miss out on savings if prices fall sharply
• Market Pricing Pros: Flexibility when fuel needs are low or irregular
• Market Pricing Cons: Full exposure to price swings and supply risks

How to Decide If your fuel use is high and steady, a contract is often the better choice. If your needs are smaller or vary a lot, market pricing may fit. Creed Fuels can help you decide which option works best for your business.

Protect Your Budget, Start Your Fuel Contract Today

Fuel prices can change fast. A fuel contract helps you stay ahead by locking in rates, protecting your budget, and keeping your operation running with reliable supply.

With benefits like steady pricing, priority delivery, and easier planning, a fuel contract gives you peace of mind. Whether you run a farm, a trucking fleet, a construction company, or an aviation operation, the right contract can save money and reduce risk.

Getting started is simple. Contact Creed Fuels today to discuss your fuel needs and explore contract options that fit your business.