Buying The Right Fuel

Friday, 06 December, 2019

Often than not, when buyers/customers purchase the fuel, the price is getting 1st highlight and ignoring the enabler conversation to find out the best support in fuel management.

Why do the buyers/customers purchase the fuel, the answer may spontaneously say, to refuel the engine to generate energy? Indeed, it is correct, however, Easybensin would like to stress the underline main challenges before buyers/customers made the decision. 5 challenges need to be understood:

1.      How the provider could assure buyers/customers that the provider understands their product? It is not enough by showing Certificate of Analysis (COA) only, the provider should have product knowledge. The product knowledge shall consist of:

a.      Understanding the specification of the product and how the product is fit for buyers/customers.

b.      If the product specification is better than the product that has been purchased before, buyers/customers have the right to ask for advice, how buyers/customers can introduce the new & better product quality into the tank and the system?

c.      Provider shall be able to explain the Product Quality specification to the buyers/customers, in what parameters the product is good quality, how the product meets the specification set by the buyers/customers.

2.      Buyers/customers shall be able to spot the color of the product, discuss with the provider on how to identify the color, and be well informed by the provider on the potential impact due to product color.

3.      Provider could educate buyers/customers to conduct the identification of product quality. The agreed specification shall be written in terms & conditions, as it is the right of the buyers/customers. However, both providers and buyers/customers shall be landed on the same page of Product Quality standard use. Providing fairness for both sides.

4.      Product Quality issues can be varied, and the root caused of the Product Quality incident can be impacted by many cases and considerations. Herewith, some example that Easybensin has been collected:

-        Water contamination cannot be generalized, but the root caused is simple and straight forward (i.e. tank opening allow such amount of condensed air entry into the tank, the tank was open and allow water to enter the chamber, no tank inspection program for early identification of water inside the tank, etc).

-        Debris/physical contamination can be visual check, and it can start from terminal/depo, in transit due to road tanker tank/vessel tanker, buyers/customers receiving facility.

-        Bacteria contamination is an issue with Biodiesel. Hence, the Provider shall make quality control of FAME before blended into the fuel. Buyers/Customers shall get education from providers.

5.      Term & Condition of the contract, the assurance of security of supply, logistic strategy and window of delivering may impact to logistic cost, the term of delivery, term of payment and come to the end, PRICE!!

It is not about the lower price, but it about the transparency of how the services & supports to the buyers/customers affect the provider’s fuel price.

Commonly, during the tender process, part of the technical and commercial evaluation.