Pre-buying fuel is a standard practice. It's common for fuel oil, diesel, propane, gasoline and other petroleum. Even grain and milk change pride throughout the year. Futures are a way for suppliers to guarantee a sale at a price sometime in the future other another supplier. It doesn't require you take delivery at any particular time, but it does guarantee you will take delivery by the end of the term. People wait for the price to drop, then secure it at that price for the remainder of the year (deliverable upon demand). It's a way to save money, because commodities prices fluctuate day-to-day throughout the year. It has to do with changing supply, changing demand, and changing investment positions.