The American Automotive Association (AAA) of Mid Atlantic was facing increased diesel fuel costs and a lack of controls on their fuel spends.
More importantly to AAA, if diesel fuel prices spiked, they had to reimburse their service providers penny for penny for anything over a certain fuel price per gallon. This left AAA Mid Atlantic very exposed on their ability to make certain profits when fuel prices rose.
Lance Sabouni AAA Director, said, “The Sokolis introduced use to a way we could insulate our company from fleet fueling price spikes.” For AAA we were able to help provide them to an instrument called a paper hedge.
The paper hedge allows AAA to own fuel on paper, like a stock, and provides them with a cap for a certain amount of gallons on what they can pay for fuel prices. It’s basically like buying an insurance policy, so if your fleet fuel program was in an accident (the accident being $4.00 fueling prices) your insurance policy (paper hedge) will pay you. This makes the fuel budgeting process a lot more predictable and without surprises.
Sabouni, said, “Sokolis knowledge was able to put several other fueling programs in place for our company saving over $150,000 a year.”
The programs we put in place included new fuel card program, mobile fueling, card lock fueling, now all of their information can be tied together and provide not only diesel fuel saving but driver labor savings and back office recollection that took a lot of time.
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