The City of Albuquerque, N.M., has renewed its fuel hedging agreements to lock in lower fuel prices for the year ahead that's expected to save the city $1.4 million, reports KRQE.
The city will spend $1.63 per gallon for unleaded and $1.47 per gallon for diesel under the terms of the hedging contracts that start in July. The hedging investments would offset the city's bulk fuel purchases.
The city will continue hedging fuel, even though the strategy didn't work out for the 2015-2016 fiscal budget year, when the city's vehicles used 5.7 million gallons for the city's 3,916 vehicles. The city paid $2.77 per gallon for unleaded and $2.84 for diesel, which was about $1 more per gallon that what retail customers paid.