A Fuel Transportation Agreement is an agreement entered between two parties, in which one party agrees to sell fuel to the other party. A fuel transport agreement is required for the transportation of diesel fuel, gasoline, crude oil, or another refined product. This is stipulated by the Department of Mineral Resources and Energy (DMRE). The agreement between the buyer and seller ensures steady and responsible fuel supply and transportation, at a predictable price. The agreement benefits both the buyer and the seller. A fuel seller/ transporter benefits from a fuel contract by ensuring a consistent supply of product and fuel sales. This allows sellers to provide buyers with a steady supply at predetermined prices.
A Fuel Transportation Agreement is an agreement entered between two parties, in which one party agrees to sell fuel to the other party. A fuel transport agreement is required for the transportation of diesel fuel, gasoline, crude oil, or another refined product. This is stipulated by the Department of Mineral Resources and Energy (DMRE). The agreement between the buyer and seller ensures steady and responsible fuel supply and transportation, at a predictable price. The agreement benefits both the buyer and the seller. A fuel seller/ transporter benefits from a fuel contract by ensuring a consistent supply of product and fuel sales. This allows sellers to provide buyers with a steady supply at predetermined prices.
The agreement should include details on payment expectations, delivery responsibilities, liability provisions and warranties in order for it to be valid. The agreement also serves as an assurance that both parties can count on high-quality goods and services throughout their relationship.
As stipulated in the agreement, the fuel provider agrees to provide the seller with fuel at a specified volume and price. A typical fuel contract determines a set price per gallon for the amount of time agreed upon by both parties. The agreement typically includes basic terms such as the scope of services, rates and charges, payment terms, liability and insurance provisions, and any additional provisions agreed upon by the parties. Fuel transport agreements ensure that businesses have a steady stream of fuel transported to them and avoids potential supply disruptions.
Contents of a Fuel Transport Agreement
A basic fuel transport agreement includes:
- The supplier and customer;
- Supplier and customer company details;
- Entire agreement;
- Provision of fuel;
- Fuel Quality;
- Delivery facilities;
- Fuel delivery schedules;
- Fuel specification and measurement;
- Notices;
- Liabilities;
- Warranties;
- Counterparts;
- Price and taxes;
- Costs; and
- Termination.
For more information & assistance do not hesitate to contact us.