For the benefit of the players that dont understand the fuel contracts, you pay a monthly fee and then receive the stated discount on the fuel price.
But how do you know if its worth it? Well, you need to do a little maths....
(1) Work out your average weekly fuel bill, your "actual spend". Add the last three weeks fuel bill from your income statement, and then divide by three. This is your "average actual spend". Write this number down, lets say for the purposes of this example is $345,678
(2) Next, calculate how much that would cost if you had the contract discount, lets say its 6.5%. To find the discount, you multiply your average "actual spend" by the percentage divided by 100. So thats $345,678 x 6.5 / 100 = $22,469 This is the discount amount
(3) So if you had the contract your fuel would cost you 323,209 but you have to pay a fixed monthly cost for the contract, and lets say this is 199,000. Remember this is every month, so take the contract cost and multiply by 12, to make it a whole year, then divide it by 52 (52 weeks in a year). So $199,000 x 12 / 52 = $45,923 This is the contract cost, per week
(4) If the contract cost, per week, is LESS than the discount amount then TAKE THE CONTRACT. If as in this case it's more, then to get the saving of $22,469 you have to pay $45,923 you can see its NOT worth having a contract.,