What you don’t know can hurt your fuel wholesale business

Using Technology for the Competitive Advantage

The oil and gas industry is a penny-profit industry, but those pennies quickly add up to millions of dollars – dollars that wholesale fuel buyers can afford to leave on the table. In the past, buyers relied on experience, intuition and manual sleuthing of EIA reports, analysts’ predictions and competitor’s moves.

Those actions worked in the past but to have – and keep – a competitive edge then actionable data intelligence is required. There are numerous ways that this enables wholesalers to have the advantage. Here are two compelling reasons.

 

Optimizes hedging and arbitrage

Varying price fluctuations significantly impact profitability. The advantage tips to those who can anticipate and capitalize on the fluctuations using artificial intelligence, machine learning and integrated data.

Data-driven insights help forecast price trends by analyzing historical price movements, macroeconomic indicators, and inventory levels.
In hedging, data-driven insights help forecast price trends by analyzing historical price movements, macroeconomic indicators, and inventory levels. Automating and integrating data sources, such as oil production reports, refining margins, and futures market signals, provide a comprehensive view of market direction.

Arbitrage opportunities arise when there are price discrepancies across different markets, and data-driven insights enable wholesalers to exploit these inefficiencies. In geographic arbitrage, real-time tracking of spot prices, rack prices, and wholesale costs across various regions helps identify the most profitable buying and selling locations. AI-powered logistics optimization tools analyze freight costs, fuel taxes, and terminal access fees, ensuring that transportation expenses do not erode arbitrage profits.

Predicting the forward curve structure in time arbitrage allows buyers to store fuel when future prices are expected to rise and sell when markets shift in the opposite direction

To execute these data-based strategies effectively, wholesalers rely on advanced tools and technologies. Real-time market intelligence platforms provide essential pricing data, while AI-driven predictive analytics help anticipate market trends.

 

Improve customer relationship management

Tradtionally, fuel wholesalers have relied on face-to-face interactions, personal negotiations, and relationship-driven sales, ensuring that customers felt valued and understood. While this approach fostered strong loyalty, it also introduced inefficiencies due to manual processes, delayed transactions, and a lack of real-time data to optimize pricing, logistics, and inventory management.

In today’s world, customers want both—frictionless transactions and personalized experiences in the real and digital world. Fuel wholesalers can use data intelligence to anticipate customer needs and offer proactive solutions for a more efficient and customer-centric supply chain.
In today’s world, customers want frictionless transactions and personalized experiences in the real and digital world.
One key application is consumption forecasting, where AI analyzes historical order patterns, weather conditions, and economic trends to predict fuel demand for each customer. While forecasts for 2025 and 2026 predict a reduction in gasoline consumption,  any savvy wholesaler knows demand can change quickly based on unforeseen changes in the market. Those with integrated data intelligence can quickly align inventory and logistics with actual market needs to make sure their customers receive their fuel on time, reducing last-minute shortages that could disrupt their operations.

Additionally, customized fuel contracts leverage data-driven insights to create tailored contract structures based on customer usage patterns. By optimizing pricing and volume commitments, wholesalers help customers reduce excess costs while securing reliable supply agreements. Another crucial innovation is proactive refill scheduling, where IoT-enabled fuel tank monitors automate refills, preventing stockouts for high-volume customers.

The most successful wholesalers find a balance between digital efficiency and personal relationships. Blending relationship-driven trust with data-driven precision allows wholesalers to offer the best of both worlds—efficient, frictionless transactions while maintaining the personal connections that customers value.

 

Want to maximize the competitive advantage? Use DTN solutions.

So, what is next to up the competitive advantage? The leveraging of data integration of different data sources and combined technology solutions to their fullest potential.

DTN Fuel for Wholesalers offers a suite of tools that work together to create a significant competitive advantage for fuel wholesalers:

These tools, when integrated, provide a comprehensive view of the market, enabling wholesalers to make strategic decisions quickly and confidently

The future of fuel wholesale belongs to those who can harness the power of data to drive their business forward, making every penny count in this penny-profit industry.

 

Learn more about how DTN give fuel wholesalers a competitive advantage.