
Fuel Hedging Programs
Products:
PAPCO provides value-added service through guaranteed supply and
risk management programs.
The above chart shows the volatility of distillate prices.
Future prices are subject to significant change and upside limits
are unpredictable.
Hedging is the reduction of risk with respect to ordinary
property held or to be held. It should be viewed as insurance and
not as a money making program.
Hedging benefits include:
- Helps companies perform as planned within budget
- Stabilizes cash flow and enables management to measure
performance
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