Locking in the price of diesel

[hippieforever3]

What you may be neglecting is that all of these commodity options have
a "time value". You are paying a premium for the assurance that your
price will be predictable over some period. (There is no free lunch.)

Right now with the tremendous volatility in oil and gas prices I KNOW
the time premiums are a relatively high percentage of the contract
price.

I'm not saying this won't work out for you but just cautioning you to
anticipate and account for this time value premium. A reasonable guess
is that fuel prices would have to go up 15-20% to make this even
marginally worthwhile and 40-50% to make it worth the trouble.

Now if you were planning a 20 bird caravan and paying for all the
diesel, it would be a different matter.

Regards,
GPSGary
84FC35