Answers to questions about Maximum Price Contracts
What is it?
A program designed to enable you to purchase a contract to establish a ceiling on your fuel prices for up to six months.
How does it work?
On the day you sign your Maximum Price Contract, your maximum price will be established at four cents above your current fuel price. For example, if today your price for clear diesel is $0.9099/litre; your maximum price would be set at $0.9499/litre for the term of your contract.
When does the contract expire?
The duration of the contract is six months or until you purchase the total of the litres booked in your Maximum Price Contract, whichever occurs first.
What if the market price for fuel drops during the term of my contract?
If fuel prices drop during the term of your contract, you will pay the lower price for your fuel. The Maximum Price Contract protects you against rising fuel prices, while offering the benefit of paying a lower price if the market prices decrease.
What products can I book?
You can book dyed diesel, clear diesel or furnace oil on a Maximum Price Contract.
What does it cost to buy a contract?
The cost to purchase a contract is 4.25 cents a litre for the number of litres you choose to book. For example if you choose to book 10,000 litres, your price to purchase the contract would be 10,000 x $.0425= $425.00 + HST.
Lucknow Co-op reserves the right to limit quantities booked.
You will be required to sign a contract to book the fuel.