PAPCO Price Protection Programs
Through hedging programs like the ones below we can customize an effective program for your business that mitigates the risk so that there is a correlation between your hedges and the cost of your product.
This can be achieved by using some of these popular financial tools:
- Fixed Price / Supply - Provides a known firm "fixed" price for a certain period of time tied to an exact quantity agreement.
- Market Index Pricing - Allows you to take advantage of market conditions with guaranteed supply versus purchasing product on the open market. Contracts are available using a variety of indices (OPIS, NYMEX, Platts, Argus, ICE).
- NYMEX Triggers - Offers you a fixed differential over the course of your delivery schedule with the option to place "limit" and/or "stop" orders for specified price targets.
- Index Discount with Floor (OPIS, NYMEX, Platts) - Enables you to float with the market and receive a discount on your contract index until a pre-determined floor price is reached (subject to market conditions and availability).
- Price Caps (call options) - Provides a "cap" against rising fuel prices but also allow you to benefit if fuel prices decline.
- DOE Index - Protects a business from exposure to rising fuel surcharges by allowing the ability to fix or cap a freight provider's fuel surcharge.
Manage price volatility and increase your competitive advantage!
Contact us today for a free, no obligation consultation, and let our team create a completely customized price risk management and fuel supply solution designed to meet all your requirements.