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buying group advice

Oil Buying Groups

Help for Heating Oil Buying Groups

Oil Buying Groups are becoming increasingly popular – providing buyers with the opportunity to reduce the cost of their oil through ordering larger volumes and minimising delivery costs through reducing a drivers time and distance on the road.

Oakleys Fuels work with a number of oil buying groups across the West Midlands, Staffordshire and Mid-Wales, passing on any savings in delivery time and road fuel usage that we are able to make as a result of delivering to Oil Buying Groups in a local area.

If you are considering forming an Oil Buying Group in the local area, and would like to work with Oakleys Fuels, why not get in touch with our team to discuss how you can work with our team, and the potential savings that can potentially be made. You may find the information below useful to answer any questions you may have.

The optimum order from an Oil Buying Group is around 17,000 litres which is the carrying capacity of one of our larger oil delivery tankers. If we can deliver a full tanker load to several drops within a single limited area, there are significant savings to be had. However, many Oil Buying Groups can still make savings on lesser quantities. 
The optimum price per litre that an Oil Buying Group can realise depends on the following factors:

  1. Overall round-trip distance to all the group delivery points from our nearest storage depot (Telford or Tamworth). The closer together the oil deliveries are, the greater are the potential savings in driver time and transport fuel to complete the Oil Buying Group’s order. We will work out the most cost-effective route before giving you a price per litre. If buying group deliveries are many miles apart, then the savings will be smaller;
  2. Number of deliveries: The larger the average size of each delivery, the greater the savings in driver time and transport costs that Oakleys Fuels can pass on to the Oil Buying Group;
  3. Access for our standard tankers: For example, if one of the group drops can be made only by a mini-tanker, we will have to factor in the extra costs of sending out a small vehicle for that particular delivery;
  4. Time restrictions: If one of the drops is stipulated for a certain time or a specific day (for example only after 2pm, or only on a Wednesday), we may have to visit the area more than once, eating into the time and transport discounts available to the group.

Customers who already place substantial orders as individuals (2,000 litres or more) may see the smallest savings in an Oil Buying Group. That is because they will already be receiving a favourable pence per litre rate based on the volume of their order. Users who generally order smaller quantities (500 or 1,000 litres) could see relatively greater benefits, because their individual volume discounts will not have been as big. The price per litre they pay will reflect the overall group order volume.

Oakleys Fuels are always interested in hearing from Oil Buying Groups so please give us a call!

An Independent Family Owned Business Since 1969.