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Fuel Surety Bonds for the U.S. Petroleum Industry

Unlock working capital. Replace letters of credit

What is a Fuel Bond

Fuel bonds provide operators with an
alternative to letter of credits and cash deposits.

✔ No collateral
✔ No opportunity cost
✔ Off-balance sheet

We are not a Tax bond

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Who We Are

Our Background

Why We Exist

Two decades of experience in Australia across petroleum bond products and now expanding into the U.S. market.

Traditional security ties up capital.We provide a smarter alternative.

Fuel Bond Group is a market leader in petroleumsurety bonding with deep expertise in downstream fuel markets.

Our Difference

✔ Fuel industry specialists

✔ Relationship-driven

✔ Deep underwriting expertise

Benefits of Fuel Bonds

Fuel bonds are payment guarantees issued on behalf of fuel retailers and wholesalers in favor of their suppliers.

They replace traditional security instruments such as bank guarantees, letters of credit, and cash deposits, freeing up working capital while still providing suppliers with strong, A-rated security.

 

As unconditional, pay-on-demand instruments that require no collateral, fuel bonds offer a more flexible and cost-effective way to secure fuel supply agreements for both service station operators and large fuel distributors.

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Advantages to the Suppliers/Beneficiaries

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Unconditional, pay on demand, irrevocable – comparable to bank guarantee security,

No cost incurred by the oil company,

Can be secured for the terms of the supply contract (up to 5 years maximum),

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Simplifies contract negotiations with customers.

Advantages to you, the customer

No collateral security required.

No opportunity cost on capital, better return on equity,

Off-balance sheet facility, independent of existing banking lines

Cost effective against alternatives

Simple application and renewal process.

Oil Rig Structure

Contact Us

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