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To put it simply, contract fuel is consolidated fuel purchasing. Think of car gas stations. The UPS truck gets a better deal on fuel at your local gas station than you and I because UPS buys bulk amounts in multiple locations with a few suppliers. It’s the same thing with contract fuel for aviation. Flight departments work with fuel suppliers to get a better price on jet fuel for several legs of a trip.  The flight departments appreciate the fuel savings and simplified invoicing process from one source. The FBOs enjoy 0% processing fees, reduced receivables and quick payback.