Events around the world can affect fuel prices. The COVID-19 pandemic is our current challenge. As an investor or business, you need to minimise your exposure to the risks of fluctuating prices. If you are not able to pass on this risk to others, then you need to put measures in place to manage and mitigate the risk to your organisation.
So, just how do you go about doing this? And what are the best measures for protecting your interests?
Keeping your fuel costs within a predictable range protects you from any unexpected changes or circumstances in the price of fuel around the world. If you are able to keep your consumption within a determined range, then you can protect your profit margins and future stability.
You should always try and stay focused on your core business. If you are spending too much time worrying about fuel prices and trying to mitigate its effects, then you may take your eye off the ball. Fuel price hedging can be a very complex business, and relies on a plethora of factors. That’s why you should employ the knowledge and experience of experts to help you. Leaving you free to focus on what it is that you do best.
You should try and be proactive in your risk management, which will leave you able to react more quickly when needed. Even in volatile markets there are opportunities, and if you are ready for them then this gives you an edge over the competition.
See the positive
Oil price fluctuation can be a major headache for businesses. And, just in case you hadn’t noticed, the world appears to be very unstable at the present time. With so much going on it can be easy to be over-cautious and just try and minimise the risk until more stable times come. But there are no guarantees that this will happen – just look at the current situation with COVID-19. However, there are opportunities there for ensuring your long-term success.
If you would like more help in spotting the opportunities with fuel fluctuation, or you simply need help to devise an effective risk management strategy, then get in touch with a member of our team here at Viaro Energy. We have vast experience of the oil and fuel industry and can use this to offer advice and strategy creation for your business. Get in touch with our team today to find out more about what we can do. Don’t waste your valuable time trying to develop an in-depth knowledge of fuel hedging – leave it to the experts.