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Risk management for fuel resellers and end users

  • Shipley Energy advises fuel resellers and end users on managing risks in volatile wholesale fuel markets as of May 2025.
  • Rapid market changes caused by geopolitical events, weather, trading, OPEC decisions, and supply chain disruptions drive significant fuel price fluctuations.
  • Fuel resellers face margin compression during rapid price rises, while end users risk higher operational costs, credit line stress, and supply shortages harming demand and reputation.
  • Supply chain mitigation strategies include maintaining strategic reserves covering 10 days of demand, diversifying suppliers, working with wholesalers having established redundancies, and managing inventory to reduce holding periods.
  • Applying fixed price or price cap programs can stabilize fuel budgets for end users, but careful market-structure alignment is necessary to avoid losses amid local price volatility.
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Risk management for fuel resellers and end users

Shipley Energy notes that, with wholesale fuel markets changing rapidly with political, weather and trading events, businesses and organizations using large amounts of fuel should address marketplace risks around pricing and fuel supply.

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The Billings Gazette broke the news in Billings, United States on Thursday, May 15, 2025.
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