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Worldwide wholesalers & suppliers
of marine fuels and lubricants
Clipper Oil

Clipper Oil is a worldwide wholesaler and supplier of marine fuels and lubricant oils, specializing in supplying ocean going vessels worldwide. Operating internationally from our headquarters in San Diego, California, USA, we serve the bunkering needs of all sectors of the petroleum market. Our client base includes fishing fleets, ocean-going yachts, cruise ships, cargo ships, military/government/research vessels and power plants. Read more >>

Marine Fuels

Clipper Oil supplies only the finest gas oils, fuel oils, diesel fuels, aviation fuels and marine fuels.

Lubricants

Clipper Oil stocks an extensive product line of major branded and independent lube oils.

Bunkering at Sea

Clipper Oil offers bunkering at sea via high-seas fuel tankers worldwide.

Warehouse Locations

Clipper Oil offers physical supply of product at various locations throughout the Pacific.
  • USA Office
    2040 Harbor Island Drive
    Suite 203
    San Diego, CA 92101 USA


  • +1-619-692-9701

    +1-619-398-0810

    bunkers@clipperoil.com

  • Singapore Office
    8 Eu Tong Sen Street
    #23-86, The Central
    Singapore 059818

  • +65-6646-5367

    +65-6491-5128

    bunkers@clipperoil.com

WP_Post Object ( [ID] => 158436 [post_author] => 1 [post_date] => 2017-12-06 13:59:33 [post_date_gmt] => 2017-12-06 13:59:33 [post_content] =>

The oil industry is a complex sector. There are many factors that ultimately influence the fuel prices in this industry. From weather to government policy and international politics, every factor has its own impact on these prices. The price fluctuations are somewhat controlled due to the availability of alternative fuels. However, in the longer run, local fuel prices largely affect almost every other industry vertically. Power plants rely on fuel types including IFO, diesel, and lubricant oil. They need a consistent supply of fuel at discounted rates to ensure effective power generation and distribution. The cost of fuels supplied to the power plants is also affected by significant factors influencing the fuel industry as a whole. Here, these key factors are explained:

Cost of Refining the Crude Oil:

Crude oil is refined into gasoline and diesel to make it compatible with the varied needs of this industry. The process of refining includes substantial costs that differ according to the origin and type of crude oil. The cost of refining also varies seasonally and regionally in the United States. There are different formulations of gasoline to reduce air pollution. Apart from this, refining costs also depend on the ingredients blended into gasoline and diesel.

The Cost of Crude Oil:

Crude oil is the largest factor affecting local fuel prices for diesel and gasoline. The volatility in the prices of this commodity leads to fluctuations in fuel prices. Crude oil rates are affected by the global demand and supply trends. When the demands for distillate fuel like diesel increases in other countries, it influences the local prices as well. There are many countries relying heavily on diesel fuel for transportation and power generation. When demand surges in countries like China, the prices of crude oil correspond to demands with an increase. Also, the level of crude oil production affects the global and local prices of this fuel.

Local Taxes:

Fuel prices are also affected by the state and other local fuel taxes. Motor fuel taxes are imposed in most states for covering the construction and maintenance of the roads. These taxes vary by jurisdiction. The states use different methods for imposing the taxes that ultimately affects the cost of fuel supplied to the local power plants.

Distribution and Marketing Costs:

The cost of transporting the fuel from oil refineries to power plants can be substantial. The process takes place through pipelines, barges, or trucks to the fuel terminals for final distribution. It involves the costs of managing the entire supply chain including salaries, insurance, equipment, and other overheads.

These are the primary factors that directly affect the price of diesel fuel supplied to the local power plants.

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