No business should be hostage to fluctuating fuel prices.

No, we do not sell fuel.
This is not fuel procurement; this is fuel price risk management.

Fuel hedging is a generic phrase used to describe various price risk management strategies employed by fuel consumers to reduce the effect of rising fuel prices on their costs.

Any business that spends money on fuel for e.g. transport or power generation can benefit from fuel hedging.
In addition, fuel is an input cost for many other industries and products e.g. road construction, textiles and car tyres.

FUELZA helps manage fuel price risks by profiting when fuel prices rise and protecting profits when prices fall, thereby stabilising your fuel expenses.

You will need to determine how much of your fuel spend you want to hedge. Once this has been determined, the required number of FUELZA units may be purchased on the JSE through your stockbroker, bank or investment platform in the same way as any other JSE-listed share or ETF.

Yes, fuel hedging can protect small businesses against price rises too. FUELZA can be purchased in units as small as R100.

STEP 1 – Calculate your fuel spend.
Or, as Bru would say, “How much do you spend on fuel each year?”

Bru uses 100L of diesel per month. E.g. 100L @ R20.00 per litre = R24 000 spent on fuel per year.

STEP 2 – Calculate your preferred hedge ratio.
Or, as Bru would say, “How much of your fuel cost do you want to protect?”

If Bru would like to protect half of his fuel cost, he will buy: R24 000*1/2 =R12 000 FUELZA

STEP 3 – Buy FUELZA units.
Through your stockbroker, bank or investment platform.

Bru would buy 119 FUELZA units. Price on JSE e.g. 101.25 on 21/06/2024 = R12 000/101.25

Fuel hedging helps businesses mitigate the risk of rising fuel prices, enhance budget accuracy, protect profit margins, and improve financial planning.

1.25% p.a. of the value of your hedge. However, you will not pay this directly. It is deducted from the price of FUELZA.

R100 i.e. the price of a single unit of FUELZA. This will vary over time.

FUELZA has been deliberately designed to remove the fuel consumer’s predicament of timing the fuel market. After all, if the fuel consumer was an expert fuel trader, they would not need their underlying business?

The risk management strategy applied to FUELZA adapts dynamically to fuel prices as they change, systematically increasing exposure as prices rise and reducing exposure as prices fall.

This provides the fuel consumer with an asymmetrical payoff profile.

You can increase or reduce the amount that you have hedged on any JSE trading day.