The volatility in wholesale prices caused by the ongoing events in Iran and the Gulf has understandably caused frustration and concern.
At CPS Fuels we work on a just-in-time delivery basis, usually holding 1 to 2 days stock of fuel. However, due to higher demand in the weeks leading up to the actions in the Gulf we were in a negative stock position by 3 days. Therefore receiving 6 days’ worth of orders over the War Weekend put us in an extremely exposed position.
This position was made worse by a week-long refinery shutdown by one of our key suppliers, severe allocation restrictions by other refineries, the closure of forward purchasing opportunities and the diversion of home heating oil into the aviation market. This week has seen an improvement of supply, although it is still severely restricted.
Now that we have been able to purchase fuel to cover outstanding orders, we feel more comfortable. Therefore, far from profiteering from this situation, we will be honouring orders at a substantial loss.
We are a fourth generation family business that has worked hard to build a loyal customer base, and are grateful to you for your support in these difficult times.
We reiterate that we have never cancelled an order but were very worried that for the first week after the war started simply didn’t have fuel to cover the orders placed. Wholesale kerosene has more than doubled in price since the war began, and no one knows how long this will last.
Please, monitor your tank and don’t make a panic purchase.
If practical buy smaller amounts more regularly, and if in doubt call us, we are always here to support you.
This has been an extremely difficult fortnight, with our staff receiving a great deal of abuse, and we are truly grateful to them for their resilience, good humour and loyalty.
Rest assured, we are working tirelessly on your behalf.
