Fuel Management

Government Fleets Prepared for Fuel Price Increases

March 07, 2011

TORRANCE, CA – Across the country, many municipal fleet managers are prepared for rising fuel prices via existing wholesale contracts, as reported in a number of local papers this week.

The Brownsville Herald reported that officials in Cameron County, Texas are considering looking into the issue more formally but have yet to take official action. County commissioners intend to discuss the issue at County budget meetings if prices remain high. Currently, the County fleet uses fuel cards for use at Valero stations to keep costs down.

In St. Johns County, Fla., the County budget office estimated it will spend an average of $3.15 on fuel this year, which is within the projected $1.4 million budget for fuel, according to First Coast News. Currently, vehicles fuel up at County-owned fueling stations where fuel is purchased at wholesale prices. The County is looking at biodiesel and other alternatives to reduce fuel spend.

In Reno, gas prices are more of a concern, as the city’s fleet does not expect it will be able to keep costs under the projected $1.5 million budget if prices keep rising, according to KOLOTV.

In Colorado Springs, the fleet manager for the City has purchased its fuel on long-term contracts like many others, according to The Gazette. So although gas prices are on their way up, Tom Monarco, the City’s fleet manager, said he expects that fuel spend will be within the budget. For 2012 and after, he’s not sure, as fuel price increases are unpredictable and eventually the City will have to renew those contracts.

The Hickory Daily Record reported that officials that oversee fleet operations in the City of Newton and in Catawba County, N.C. are not concerned about fuel prices yet, again because they purchase fuel in bulk. For Newton, Todd Clark, the City’s fleet manager, said that if fuel spend rises, the City will have to adjust its budget. Catawba County has purchased a few hybrid vehicles to help keep fuel costs down.

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