For current pricing please call the office 541-565-3737, or the Department Manager, Greg Hohensee, at 541-980-8434.
Interested in getting fuel prices as a text on your cell phone or receiving our twice daily Bid Sheet via e-mail or fax? Let us know.
Fuel Delivery
MCP delivers fuel anywhere within a 100 mile round trip from Moro, OR with no additional charge. Every round trip mile past that will be billed at a flat $3.00 per mile for deliveries of 750 gallons or more. There is a premium added for smaller deliveries, and incentives for taking a full delivery truck to one location.
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Description
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Price
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Less than 200 gallon delivery
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$.13 above card lock
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200 -749 gallon delivery
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$.04 above card lock
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Greater than 750 gallon delivery
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Card lock price
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Full Truck Delivery (3800 or 2500)
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$.03 discount per gallon
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Forward Contracting
The biggest change to our contracting options is that we will now guarantee a specific price for a specific period of time. In the past, on prepaid contracts we guaranteed a specific price for an unlimited period of time. With grain as an analogy, fixed price contracts are set with a delivery date, and storage has a cost. MCP’s forward contracting options on fuel can be broken down into three delivery methods, and two payment options:
Delivery Method
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Wholesale Price Protection
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In any gallon of fuel you buy, there are 4 costs. 1) the wholesale cost at the bulk terminal, 2)the freight to get it from the terminal to the local bulk site, 3)the margin added on by the retailer to cover their costs and 4) any applicable taxes. The “Wholesale Price” contract allows you to protect the wholesale portion of the cost of your fuel, and take delivery from any supplier. You first lock the wholesale price with MCP. Then when you take delivery, just provide MCP with proof of the volume of the delivery, and the day we receive notification we will mark your contract gallons to the lowest rack price (PDX) that day. If wholesale prices have climbed, we will reimburse you for the change in price. If the prices have fallen, you have the option to use the contracted gallons in the future.
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Tanker Load (full tanker only)
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Lock a price on a whole tanker delivered to your tanks by a specific date.
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Retail (card lock or 750+ gallon delivery)
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Lock a price on gallons taken by a specific date, drawn from the card lock or delivered (delivers smaller than 750 gallons subject to additional charge)
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Payment Options
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Prepaid
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Pay up front and get the best deal to lock a price for a specific period of time
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Future Price
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Use our money to lock your price, but pay a premium based on the length of the contract
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How it works
You buy a 1000 gallon prepaid contract with a final delivery date of December 31, 2011. Any gallons you draw between now and the final delivery date will be credited to your contract (there is no requirement to take contracted gallons before non contracted gallons). If you have surplus gallons at the end of the contract, you have 3 choices:
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Take delivery before the final date
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Guarantee the remaining gallons for another period of time. i.e. adding six months for an additional $.xx per gallon
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Let’s assume a contract price of $2.00 on a surplus of 100 gallons. You decide to renegotiate the gallons for another 3 months. The spread for that period is $.06. $.06*100gal=100 gallons locked at an additional $6.00 for an addition three months.
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Guarantee the price for another period of time, and adjust the remaining amount of gallons.
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Let assume a contract price of $2.00 on a surplus of 100 gallons. You decide to renegotiate the price for another 3 months. The spread for that period is $.06. ($2.00/$2.06)*100gal=97.08 gallons locked at $2.00 for an addition three months.
Future price contracts work in the same way with some minor differences. Instead of paying for all of the gallons up front, you pay the fixed price at the time you draw the gallons. When it comes time to renegotiate, you can either spread the contract as a future price, or buy out the remaining gallons cash and renegotiate for a new period at the less expensive cash spread.
Additional Contract Tools
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Automatic Pricing
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This additional risk management tool triggers usage of your contract gallons only when the cash price is above the threshold you set. As an example, you set your threshold at your contract price. For two months after you contract, prices stay below your contract. Then prices jump five cents. Our contract system would bill you for the cash price of gallons used, until the price jump, where it would start using your contracted gallons.
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Product Adder
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This tool allows you to use contract gallons for an additional product in the same product family (gas, diesel). As an example, you contract dyed diesel with a clear diesel adder of $.54 (additional taxes). If you drew 100 gallons of clear diesel in a month, you would be charged an additional $.54 per gallon, totaling $54 on your fuel invoice.
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CFN Site Adder
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If you have a CFN account (commercial customers only), you can draw gallons from our Grass valley CFN card lock, plus 3 other CFN sites chosen at the beginning of the contract. An adjustment for freight and local taxes will be made for each of the additional 3 sites, usually plus or minus a few cents.
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