Top 5 Questions Every Fuel Buyer Asks Before Closing a Deal

Buying petroleum products—whether it’s EN590 diesel, Jet Fuel A1, or LPG—requires trust, documentation, and clear procedures. Before signing a Sales & Purchase Agreement (SPA), experienced buyers always ask five critical questions.

This guide answers those questions so you know what to expect before committing to a deal.

1. Is the product real and physically available?

This is the most important question. A legitimate seller must provide proof of product (POP), such as:

• Tank Storage Receipt (TSR) → shows the product is in a bonded terminal
• SGS Report (Quality & Quantity) → recent inspection verifying specs
• Injection Report & Commercial Invoice

If the seller cannot show POP before any payment instrument, it’s a red flag.

2. Where is the product stored, and which terminal will we lift from?

Serious buyers want to know exactly which terminal holds the fuel.
Common hubs include:

• Rotterdam, Netherlands → Europe’s main fuel storage
• Fujairah, UAE → Middle East & Africa hub
• Houston, USA → for North & South American supply
• Jurong, Singapore → SE Asia distribution

If a seller is vague about terminal location, they likely have no real allocation.

3. What is the payment and title transfer procedure?

For real transactions, the typical sequence is:

1. Buyer issues ICPO + Proof of Funds (SBLC, LC)
2. Seller issues draft SPA
3. POP is provided (TSR, SGS, CI) after POF verification
4. SGS inspection at terminal confirms specs
5. Title transfer → payment released

Any seller demanding upfront cash deposits before POP verification is likely not real.

4. How is pricing structured?

Fuel prices are based on Platts or Argus indexes + a premium.

• FOB Rotterdam Jet Fuel → Platts FOB Rotterdam + Premium
• CIF Fujairah EN590 → Platts Gasoil + Freight + Insurance

If someone offers fuel far below market index, it’s either fake or low-quality product.

5. Who are we really dealing with—refinery, mandate, or broker?

You should always know the seller’s position:

• Refinery → produces the product
• Refinery mandate → directly authorized to sell
• Broker/intermediary → just passing an offer

The longer the broker chain, the less likely the deal will close.

How Saurin Inc Answers These Questions

When you work with Saurin Inc:

• ✅ We show verifiable terminal documents (TSR, SGS) before title transfer
• ✅ We confirm exact terminal locations (Rotterdam, Fujairah, Houston)
• ✅ We use ICC-compliant banking (SBLC, LC, escrow)
• ✅ Pricing is transparent and linked to Platts

Closing a Deal with Confidence

Before you sign an SPA, you should always get clear answers to these 5 questions.

Want a transparent fuel sourcing process?

📧 sam@saurininc.com
📱 +1 706 587 6182 (WhatsApp)