BIFA has been asked by Bank of England to engage with members regarding ‘fuel hedging’ in light of the current uncertain business climate.

All information provided to us will be dealt with on a “Strictly Private and Confidential” basis. 

‘Fuel hedging’ is a risk management strategy used by companies with high fuel consumption to secure fuel prices using financial contracts, futures, swaps or options. The process will mitigate the risk of volatile, rising costs, allowing for more stable budgeting, although it can mean paying above market rates if prices fall.

If you currently use fuel hedging arrangements for fuel purchases, BIFA would be grateful for some brief feedback on the following points:

• If you fix your diesel prices, how much do you pay above the current average market rate (this week’s average is £140.86 per litre)?
• How long do you fix your prices for?

Any information that you could provide to Robert Windsor at r.windsor@bifa.org would be much appreciated.

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