Learn more about Petrol Protect's product services to manage risk exposure.
Products
Petrol Protect's product services to offset interest rate.
Swaps vs. Caps vs. Collars:
Swaps:
- A fuel swap takes a variable risk exposure and makes it a fixed rate through the term of the transaction.
- Users: When a buyer wants "insurance" against fuel prices rising and be able to control expenses enabling more budgeting control.
Caps:
- Protection for gas prices exceeding a selected price per gallon ("strike price") over a specified term. A gas price cap limits a buyer's fuel cost expense while allowing the buyer to benefit from stable and declining rates.
- Users: Buyer wants disaster insurance against gas prices rising and the ability to still benefit fully from stable to declining rates
Collars:
- A collar is a hybrid product between swaps and caps. The client never pays more than the cap price and never less than the floor price.
- Users: Buyer wants disaster insurance against fuel prices rising and the ability to still partially benefit from stable to declining rates. (The user gives some of the upside away by not benefiting from market prices lower than the Floor price but is compensated for giving that benefit up by paying less of a premium than a cap).
About Petrol Protect
Petrol Protect is a complete solution company offering both education and consulting to protecting your company from price fluctuations and volatility.
