SARM Fuel Supply Program
Prairie Fuel Advisors (PFA) has been successfully negotiating fuel contracts and developing relationships with petroleum providers since 1995. The objective of this program is to combat one-sided pricing advantages enjoyed by petroleum suppliers and to assist members of PFA’s partner associations to purchase fuel at a lower cost, while still supporting local fuel dealers.
Member Benefits
• Lower the cost of gasoline, diesel and lubricants.
• Retail credit card program with Fas Gas and RaceTrac Gas allows for a discount of 7 cents per litre in addition to any local discount.
• Control the price changes of fuel to eliminate the practice of fuel suppliers providing “give away” prices in response to a tender and then increasing the prices to more profitable levels in the following months.
• Eliminate the cost and burden of tendering for fuel.
• Support for local fuel agents The SARM fuel supply program members purchase over 5,600,000 litres of fuel each year.
How it Works
The Alberta Association of Municipal Districts and Counties (AAMDC) owns PFA, which administers the program and acts as the purchasing agent.
Under the bulk fuel and packaged lubricant delivery process, a member calls the local agent of the approved supplier to place the order, thus supporting local businesses who deliver the fuel. Invoicing and pricing is handled by the approved supplier’s local or regional head office. The AAMDC receives the invoices from the head office, processes them and re-invoices members by email with the inclusion of an administration fee. A summary of the receivables from members and payable to the supplier and PFA is sent to SARM. SARM then pays the supplier in advance of member payment. After receiving their invoice, the members pay SARM.
In addition to the price of the fuel or lubricants, a fee of 1.2 cents per litre on fuel and 5 cents per litre on lubricants is added to cover administrative costs of the program. The fee is split, with 90% paid to PFA and 10% retained by SARM.
There is no cost to join the program and if a member feels that it is no longer advantageous to continue in the program, they may withdraw from their fuel supply contract, with notice, at any time, without penalty.
Free Cost Analysis
If you are considering membership in this program but are not sure if you will benefit from cost savings, Prairie Fuel Advisors will conduct a cost-analysis completely free of charge. To do this, they require copies of your previous year’s fuel & lubricant purchases so that they can compare your prices against the program prices during this time period.
For more information, visit the Prairie Fuel Advisors website www.prairiefueladvisors.ca or refer to the attached brochure here.
If you are interested in joining the program or in a cost analysis, please contact:
Duane Gladden
Manager - Marketing, Trade and Business Development
Alberta Association of Municipal Districts and Counties
Direct: 1-780-955-4080
Fax: 1-780-955-3615
Print This Page