Why Storage is Your Deposit in Bulk Fuel Deals

In the real estate world, a down payment shows you’re serious about buying. In bulk petroleum transactions, storage plays the same role. Without it, your deal won’t even get off the ground.

Let’s break down why verified storage is a non-negotiable part of fuel producer procedures—and how it functions as the buyer’s financial commitment.

Storage = Skin in the Game

Fuel producers require buyers to control and validate terminal storage before delivering any product or Proof of Product (POP). Why? Because the producer can’t deliver unless there’s a place to inject the fuel.

Unlike cash deposits, storage is:

• Fully under the buyer’s control

• Refundable (if chosen wisely)

• Critical to logistics planning

Storage proves that you’re not just browsing—you’re ready to buy.

What Counts as Valid Storage?

Simply saying you “have tanks” isn’t enough. Sellers expect detailed documentation that confirms the fuel can be delivered without interruption. Acceptable proof includes:

• Tank-to-Tank Injection Agreements

• Injection Programming Agreements

• Product Transfer Approvals

• Inspection Approval Letters

These documents should clearly outline:

• Tank Numbers

• GPS Coordinates

• HUB Numbers

• Terminal Access Codes

Each of these is validated with port authorities and logistics teams to ensure legitimacy and operational readiness.

No Tanks, No Deal

This isn’t just policy—it’s practicality. The producer gets paid after the fuel is delivered and verified. If no tanks are available, there’s no injection, no fuel movement, and no payment.

Expecting POP without tanks is like expecting keys to a house without securing a mortgage. It’s a non-starter.

Comparing Industries

To put things in perspective, here’s how storage deposits in fuel deals compare to other major purchases:

• Luxury Real Estate

  • Price $10M;

  • Approx. Deposit: $500K;

  • Percentage of Purchase Price: 5.0%;

• Commercial Real Estate

  • Price $15M;

  • Approx. Deposit: $450K;

  • Percentage of Purchase Price: 3.0%;

• 100,000 MT EN590 Fuel

  • Price $50M;

  • Approx. Deposit: $560K (7 days storage);

  • Percentage of Purchase Price: 1.12%;

• 2M bbl Jet A-1 Fuel

  • Price $140M;

  • Approx. Deposit: $630K (9 days storage);

  • Percentage of Purchase Price: 0.0045%;

Fuel deposits are often smaller percentage-wise, but they carry just as much weight in validating buyer intent.

Choosing the Right Tank Farm

Select your tank farm carefully—one that allows:

• Port authority validations

• Document issuance for injection

• Refunds in case the transaction doesn't proceed

Producers don’t benefit from where you store your fuel; they only care that it’s real and ready.

Bottom Line

If you want to buy bulk fuel, storage is not an afterthought—it’s your entry ticket. It shows readiness, filters out time-wasters, and unlocks the next step in the transaction: Proof of Product and delivery.

Secure your storage. Validate your access. And earn the right to move forward.