Barrel Fuel

An FBO offers a set of core services such as fuel, use of hangars, ground services, and aircraft maintenance depending on their physical location and client needs. Despite fuel being the most profitable aspect of their business, FBO’s currently lack the technology required to offer this product directly to their customers. Because of this, they are forced to engage with third party resellers to facilitate these transactions on their behalf. FBO’s simply do not have the technology budgets, software capabilities, resources, or discretionary capital to invest in a direct to consumer (DTC) product. Some large-network FBO (5 or greater locations) will offer their largest volume customers direct fuel prices through weekly emails or csv files. This has created a major gap in infrastructure when purchasing fuel in the industry.

Since FBOs do not have a platform or a solution to work directly with the customer, third party resellers have established themselves as a necessity for planes arriving at an airport. Third party resellers control the flow and price of fuel at the airports today resulting in many FBOs losing that direct touchpoint with their customers, and thus their ability to upsell or cross sell into other services and offerings.

FBO’s are begging for a solution to be built and more importantly to no longer have dependency on third party resellers!  By relying on these third-party resellers for their jet fuel (the largest expense in operating an aircraft), owners / operators are commonly ripped off due to the lack of transparency on pricing. Currently, there is no way to really know what you are going to pay for fuel because the price often fluctuates even after you have agreed on the price (hidden fees and taxes). Furthermore, the resellers will oftentimes manipulate the price based on how likely the client is to ask about the price of fuel or even the reseller’s assumptions of the client’s wealth. Customers flying into an airport in a $65 million aircraft may not have much bargaining power for a lower price of fuel.

To counteract the lack of transparency, owners / operators must spend time calling multiple vendors for quotes, negotiating with those vendors, and searching for the cheapest fuel. One reseller, for example, in 2019 made over $200 million in profit alone using these same tactics mentioned above. Customers who believe that third party resellers are providing a fair price are often being taken advantage of simply because there is no other alternative.

An FBO offers a set of core services such as fuel, use of hangars, ground services, and aircraft maintenance depending on their physical location and client needs. Despite fuel being the most profitable aspect of their business, FBO’s currently lack the technology required to offer this product directly to their customers. Because of this, they are forced to engage with third party resellers to facilitate these transactions on their behalf. FBO’s simply do not have the technology budgets, software capabilities, resources, or discretionary capital to invest in a direct to consumer (DTC) product. Some large-network FBO (5 or greater locations) will offer their largest volume customers direct fuel prices through weekly emails or csv files. This has created a major gap in infrastructure when purchasing fuel in the industry.

Since FBOs do not have a platform or a solution to work directly with the customer, third party resellers have established themselves as a necessity for planes arriving at an airport. Third party resellers control the flow and price of fuel at the airports today resulting in many FBOs losing that direct touchpoint with their customers, and thus their ability to upsell or cross sell into other services and offerings. 

FBO’s are begging for a solution to be built and more importantly to no longer have dependency on third party resellers!  By relying on these third-party resellers for their jet fuel (the largest expense in operating an aircraft), owners / operators are commonly ripped off due to the lack of transparency on pricing. Currently, there is no way to really know what you are going to pay for fuel because the price often fluctuates even after you have agreed on the price (hidden fees and taxes).

Furthermore, the resellers will oftentimes manipulate the price based on how likely the client is to ask about the price of fuel or even the reseller’s assumptions of the client’s wealth. Customers flying into an airport in a $65 million aircraft may not have much bargaining power for a lower price of fuel.  To counteract the lack of transparency, owners / operators must spend time calling multiple vendors for quotes, negotiating with those vendors, and searching for the cheapest fuel. One reseller, for example, in 2019 made over $200 million in profit alone using these same tactics mentioned above. Customers who believe that third party resellers are providing a fair price are often being taken advantage of simply because there is no other alternative. 

A new movement in fuel purchasing! 

Barrel Fuel is an automated fuel purchasing platform revolutionizing the way customers and FBO’s connect in the private aviation industry. Our goal is to simplify the fuel shopping experience. Customers will have the ability to view direct fuel prices, straight from the source and purchase through our interactive platform. Barrel will advertise an affordable and competitive fuel price, set by the FBO on a weekly basis, allowing customers to finally achieve the transparency that the industry is lacking today. By building a platform where FBOs and customers have a direct line of connectivity, owners / operators will finally have an alternative to their dependence on the third-party resellers.   By providing a new alternative to purchase fuel, third party resellers will be unable to compete with Barrel who will be selling the fuel directly from the source (the same place the third-party resellers purchase fuel from pre-markup). Moreover, Barrel’s pioneered marketspace will work cohesively between the FBOs and operators via desktop and mobile platforms for increased communication and to provide a stage for FBOs to advertise their location and pricing. FBO’s will also have the ability to offer additional services outside of fuel upon checkout (i.e., hanger space, wash/detail, maintenance, catering etc.) providing additional revenue streams. 

Barrel pairs transparency with the ability to order fuel in an automated and digital way. In a few clicks, customers can secure their fuel release for the best price – all without wasting their time calling multiple vendors to beg for a fair price. Customers will no longer have to chase invoices, pricing discrepancies, or waste time comparing price quotes capitalizing on this incredible opportunity.