Fuel supply agreement template

This a fuel supply agreement template sample that you can use free of charge. You can copy and paste it into Microsoft Word or Google Docs and edit as you like.

Fuel Supply Agreement

This Fuel Supply Agreement (the "Contract") is entered into on _________________________ [Date] by and between:

Fuel Supplier: _________________________ [Supplier or Company Name] located at _________________________ [Supplier Address] (the "Supplier").
Client: _________________________ [Client Name] located at _________________________ [Client Address] (the "Client").

1. Scope of Supply

The Supplier agrees to supply fuel to the Client as outlined below:

1. Fuel Description

The Supplier shall provide _________________________ [Type of Fuel – e.g., Diesel, Gasoline, LPG] to the Client’s premises located at _________________________ [Delivery Address] on _________________________ [Days of the Week or Delivery Schedule] between the hours of _________________________ [Start Time] and _________________________ [End Time].

2. Quantity and Delivery

The Supplier agrees to deliver a total quantity of _________________________ [Quantity in liters or gallons] per _________________________ [Day/Week/Month]. Deliveries shall be made using approved and calibrated fuel tankers that comply with all safety and regulatory standards.

3. Quality Standards

The fuel supplied shall meet the quality specifications and standards set forth by _________________________ [Relevant Authority or Standard – e.g., ASTM, EN]. The Supplier warrants that the fuel will be free from adulteration, contamination, or defects that may render it unsuitable for use.

2. Terms of Contract

This Contract shall commence on _________________________ [Start Date] and shall remain in effect for an initial term of _________________________ [Number] months/years unless terminated earlier as provided herein.
Upon expiration, this Contract shall automatically renew for successive terms of _________________________ [Number] months/years unless either party provides written notice of termination at least _________________________ [Number] days prior to the renewal date.

3. Payment Terms

The Client agrees to pay the Supplier at a rate of $_________________________ [Price] per _________________________ [Unit of Measure – liter/gallon].
Payment shall be made via _________________________ [Payment Method – e.g., bank transfer, check] within _________________________ [Number] days from the date of invoice.
Late payments shall incur a penalty of _________________________ [Late Fee Amount or Percentage] per week until full payment is received.
The Supplier reserves the right to suspend deliveries for overdue accounts.

4. Responsibilities of the Parties

The Supplier shall ensure timely delivery and maintain the quality of fuel during storage and transportation.
The Client shall provide safe access to the delivery location and ensure that storage facilities comply with applicable safety and environmental regulations.
Both parties shall comply with all relevant local, state, and federal fuel handling and storage laws.

5. Termination

Either party may terminate this Contract with _________________________ [Number] days’ written notice.
In the event of termination, the Client shall pay for all fuel delivered up to the termination date.
The Supplier reserves the right to terminate immediately if the Client fails to make timely payments or breaches any material terms of this Contract.

6. Force Majeure

Neither party shall be held liable for delays or failure to perform obligations due to causes beyond their reasonable control, including but not limited to acts of God, war, embargoes, strikes, government restrictions, or natural disasters.

7. Confidentiality

Both parties agree to maintain the confidentiality of all pricing, business, and operational information obtained during the course of this Contract and not to disclose such information to any third party without prior written consent.

8. Governing Law and Jurisdiction

This Contract shall be governed by and construed in accordance with the laws of _________________________ [Your State or Country]. Any disputes arising under this Contract shall be resolved exclusively in the courts of _________________________ [Your State or County].

9. Entire Agreement

This Contract constitutes the entire agreement between the Supplier and the Client and supersedes all prior discussions, agreements, or understandings, whether written or oral.

IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first written above.

Supplier
Signature: _________________________ [Signature]
Name and Title: _________________________ [Name and Title]
Date: _________________________ [Date]

Client
Signature: _________________________ [Signature]
Name and Title: _________________________ [Name]
Date: _________________________ [Date]

Sign documents for free

No signup required

What's a Fuel Supply Agreement?

A fuel supply agreement is a legally binding contract between a fuel supplier and a buyer (such as a business, transport company, or industrial operator) that outlines the terms and conditions for the purchase, delivery, and pricing of fuel. This agreement ensures both parties have a clear understanding of their rights, obligations, and expectations regarding the supply and use of fuel. In this article, we'll explore the essential components of a fuel supply agreement, its purpose, and key considerations for drafting one.

1. Definition and Scope

A fuel supply agreement defines the type and scope of fuel services to be provided. This includes details about the type of fuel (e.g., diesel, gasoline, aviation fuel, or natural gas), quality specifications, quantity, and delivery methods. The scope may also include any value-added services such as storage, distribution, or maintenance support related to fuel handling.

2. Parties Involved

The contract identifies the two main parties:

The Supplier: The company or entity responsible for providing and delivering the fuel.
The Buyer: The business or organization purchasing the fuel for its operations.

Each party’s legal name, address, and contact information are included, along with details of any authorized representatives.

3. Terms and Conditions

The agreement sets out the terms governing pricing, payment schedules, invoicing, and penalties for late payments. It may also include clauses regarding price adjustments based on market fluctuations, transportation costs, and government taxes.
Additional terms might address liability, force majeure events, and warranties regarding the quality and consistency of the supplied fuel.

4. Duration and Renewal

Fuel supply agreements specify the contract duration—whether it’s a fixed-term agreement (e.g., one year) or an ongoing supply arrangement. Renewal clauses may allow automatic extensions or renegotiation upon expiration. Termination provisions should clarify under what circumstances either party can end the agreement, such as non-payment, delivery failures, or regulatory changes.

5. Delivery and Storage Specifications

Delivery terms detail how and when the fuel will be delivered, including transport methods (truck, pipeline, or marine), frequency, and delivery points. Storage conditions and safety standards are often specified to ensure compliance with environmental and safety regulations. The agreement may also outline responsibility for losses or contamination during transport.

6. Legal Compliance

Fuel supply agreements must comply with applicable laws and industry regulations, including environmental protection standards, fuel quality controls, and transportation safety rules. Both parties should ensure that licenses and permits are valid and that all operations adhere to national and local regulatory requirements.

7. Confidentiality and Dispute Resolution

Confidentiality clauses protect sensitive business and pricing information exchanged between the supplier and buyer. Dispute resolution provisions define how conflicts will be managed—whether through negotiation, mediation, arbitration, or legal action—and specify the governing law and jurisdiction.

Conclusion

Fuel supply agreements are essential for businesses relying on consistent and reliable access to fuel. They provide legal protection, operational clarity, and pricing stability for both suppliers and buyers. By clearly defining terms, delivery standards, and legal obligations, these agreements help prevent disputes and ensure smooth fuel supply operations. Whether you’re a supplier or a client, understanding the core elements of a fuel supply agreement is crucial for establishing a transparent, secure, and sustainable partnership.