Energy

Liquid Fuels

Liquid Fuels purchase is Part of the Pan Government Energy Project, sponsored and chaired by the Ministry of Defence with the aims to minimise costs and deliver demonstrable savings, whilst maintaining or improving current service levels.

The public sector uses 2.5bn litres of liquid fuel (heating, automotive, aviation and marine fuel) per year.

This equates to a value percentage breakdown of Heating Oil / Automotive (44%), Marine (11%), Aviation (35%) and Fuel Cards (10%).

At 2006/2007 prices this equates £1.317bn. The pie chart below shows how the above spend is broken down by each organization:

The 78% of fuels bought by the public sector are procured through 7 buying organisations.

Initially the work stream will focus on bulk automotive and heating fuels which represent 44% of volumes purchased.

A Liquid Fuel working group has been formed in October 08 with the aim of exploring the opportunities to deliver best value for money through aggregation, best practice and risk management. Representatives of MoD, NHS PaSA, ESPO, Laser, Buying Solutions and the West Midlands RIEP are member of this liquid fuel working group.

Best Practice Liquid Fuels Procurement Criteria

The Pan Government Energy Project has identified the best way to purchase your liquid fuel requirements involving category expertise and representation from central government and the wider public sector including the Energy Strategy Team (EST) and the Energy Collaborative Category Board (CCB).

Since one of the aims of the Project is to establish, promote and report on examples of collaboration across and within category areas, it is therefore key to identify which contracts are using best practice and are appropriately recorded and recognised within the Pan-Government Energy Project.

The basic principle behind those procurement criteria is to reduce multiple approaches to the market, duplication of time and efforts and to ensure that value for money is delivered; in most circumstances aggregated liquid fuel volumes will deliver benefits to end users.

The purpose of setting best practice criteria for Public Sector Liquid fuels procurement is to identify the public sector departments and organisations using enabled contracts which meet best practice. One way to achieve this is trough accessing a central purchasing body (sometimes referred to as a public sector buying organization) with the right knowledge, skills and experience who can buy liquid fuels on your behalf.

The Pan Government Energy Project has jointly developed best practice liquid fuels procurement criteria against which CPB frameworks are being evaluated.

These criteria include:

Ensure that the contract/framework is enabled for other public sector users.
Transparent pricing mechanisms
Minimum number of customers/volume for framework

The full criteria can be downloaded here (PDF, 16KB). Any CPB not currently engaged with the project but wishing to be so can contact the Project at energy@ogc.gsi.gov.uk

Through the link below it is possible to view the full list of contracts available.

Pan Government contracts:
You can view all Pan Goverment contracts in the contracts database.

Print this page