Government Fleet Top News

Los Angeles County Feels Pinch of Rising Gas Costs

April 13, 2005

LOS ANGELES – Millions of dollars have been taken away from government agencies due to record gas prices, according to the Long Beach Press Telegram. In Los Angeles, the main fuel budget is expected to go from $12.6 million to $18.7 million by the end of the fiscal year on June 30.Los Angeles County's fuel costs are 15 percent higher, according to a spokeswoman. The Metropolitan Transportation Authority is paying twice as much as it budgeted for diesel and 45 percent more for compressed natural gas to run the 2,490 buses in its fleet.In Long Beach, Calif., the gasoline price for the city's 1,300 vehicles has gone up to $2.27, compared with $1.90 a year ago. The city currently runs about 300 alternative-fuel vehicles. There is a benefit from the rising oil prices since there are sizeable oil deposits within the municipality. The city's oil operation is expecting to transfer $7.7 million in revenue this fiscal year to the general fund. According to Chris Garner, the city's energy director, that represents an increase of $1.1 million over what was anticipated in the 2005 budget.

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