Bulk Fuel Purchasing Program

The Bulk Fuel Purchasing Program is an innovative and simple initiative aimed at securing better fuel and lubricant pricing for local governments in BC. UBCM is pleased to partner with Prairie Fuel Advisors (PFA) in developing the program.

PFA manages fuel supply programs for the Alberta Association of Municipal Districts & Counties, the Saskatchewan Association of Rural Municipalities and the Association of Manitoba Municipalities, having established the first program in 1995. Across these three provinces, over 250 municipal members use PFA fuel supply programs for joint purchase of approximately 50 million litres of diesel, marked diesel, unleaded gasoline and automotive oils, greases and lubricants annually from a number of local, regional and national suppliers.

Advantages & Pricing

The Bulk Fuel Purchasing Program offers the following advantages:

  • Cheaper fuel, achieved with group purchasing.
  • Elimination of administrative hassle through fuel purchase management, 24/7 access to price change info, invoice tracking, and purchase data.
  • Flexibility - join for free and feel free to leave at any time, with no complicated contracts.
  • Strong customer service from program partners UBCM and PFA, to the high standard upheld by UBCM since 1905.

Pricing Model

The pricing structure limits volatility to some degree by locking prices for a week at a time. Notice of pricing is released two days in advance, to give members the opportunity to manage their purchases with ample time and accurate information.

Pricing is tied to wholesale or rack prices only, with transportation and marketing margins set at the time new contracts are entered into. Price changes are based on the average posted rack price from the previous week, with several days advance notice of the changes.

The bulk, lubricant, cardlock and retail prices include a commission on fuel of $0.012/litre. PFA has traditionally been able to obtain lower average prices from suppliers than local governments are able to obtain on their own when purchasing fuel outside of the program. This reduction in fuel costs generally ranges from $0.02/litre to $0.06/litre.

Contact

For more information, check out the Prairie Fuel Advisors website or contact:

Anna-Maria Wijesinghe
Manager, Member & Association Services
Tel: 604 270 8226 ext. 111
Email: amwijesinghe@ubcm.ca