Fuel Price Transparency for the Canadian Transport Sector
Fuel price fluctuations are nothing new for the transportation business. For most, it’s a cost of operating that’s to be absorbed or passed on. It’s out of our control – or at least there’s little that can be done strategically to anticipate and react to these changes.
Fuel price fluctuations are nothing new for the transportation business. For most, it’s a cost of operating that’s to be absorbed or passed on. It’s out of our control – or at least there’s little that can be done strategically to anticipate and react to these changes.
That feels especially true since the Russian invasion of Ukraine in early 2022; diesel costs have surged and diesel prices feel more volatile than ever before.
Opacity is also an issue. Localized fuel price information in Canada is relatively opaque, with suppliers issuing a single daily price, with little or no transparency behind the markup. There have been efforts to make this information more available – such as the 2020 BC Fuel Price Transparency Act. However, much of this information is only useful in hindsight, or useful to organizations which can dedicate significant resources to parsing and strategizing around the data.
Collating the inputs of diesel pricing and making strategic decisions with the data can be very valuable to purchasers – but not every business has the option to bring these abilities in-house. Ironically, with margins tighter than ever it can be difficult to find the resources to invest in efficiencies and market insight to remain competitive.
That’s why some organizations have identified a gap in the market, aiming to bring this data to fuel purchasers quickly to enable them to make decisions and negotiations with their existing resources.
One such business is Portland Fuel, which began operating as a specialized fuel hedging provider in 2009 and is now looking to launch a new fuel price transparency tool, detailing daily rack price information broken down to show the full make-up of the price, giving fuel buyers visibility of the premiums charged by fuel suppliers.
If you’re interested in subscribing to Portland Pricing, CITT-Certified Logistics Professionals, CCLP Candidates (including learners!) and Affiliate Members are entitled to a special discount! Subscribe here, and if you’re entitled to a discount via CITT, reach out to Daniele at Dlippi@citt.ca for your checkout code!