Price Risk Management

Price Stabilization Programs

PAPCO's Energy Management Group offers a variety of price risk protection
programs to manage market volatility including:

• Firm fixed prices with guaranteed supply
• Fixed price with downside protection
• Caps - market related cost with a ceiling price
• Collars - cost guaranteed within a price range
• Swaps - price insurance without physical barrels

In addition to price protection, PAPCO’s Energy Management Group programs offer the assurance of guaranteed supply. There is never an allocation imposed on contract customers because their supply is procured by PAPCO EMG immediately after a purchase order is issued. In addition, we offer a staff of experienced dispatchers and after-hours emergency service to ensure all deliveries are made in a timely manner.

PAPCO’s Energy Management experience and expertise in trading in the New York Mercantile Exchange allows us to advise customers on values at which to “lock-in” their price. We have over 18 years of experience in this business. Our fixed price “buy recommendations” for distillate have produced significant saving for our customers 11 out 12 times in the past several years.

PAPCO's proficiency in fundamental and technical market analysis enables PAPCO EMG to make buying recommendations for customers and develop specialized programs to meet their fuel cost objectives. PAPCO’s EMG customer base includes transportation companies, construction and road builders, industrial consumers, federal/state/local government entities and petroleum jobbers/distributors. PAPCO EMG customers can hedge their fuel costs through price protection agreements for time periods ranging from three months to two years.

PAPCO EMG can customize a specific plan for your company to reduce price volatility and meet budget goals. Please contact us at: 757-499-5977 or 800-899-0747