RICHMOND, VA –- Gasoline prices are taking a bigger bite out of household finances and gnawing at local government budgets as well, reported the Times-Dispatch newspaper. In the past four months, the governments of metro Richmond and surrounding counties have seen gas prices escalate by about 30 percent, compared to an increase of about 23 percent for consumers. Diesel fuel, while on the rise, has increased at a lower rate. The increase has forced government departments that use gas-powered vehicles, such as police and the assessor's office, to make tough decisions about how to stretch their budgets to cover the escalating cost in these last few months of the fiscal year. For local governments, that means employing gas-saving measures such carpooling and consolidating trips. For residents, gas-saving measures could mean money previously earmarked to improve local police departments' technology will now go into patrol car gas tanks. The average driver purchases gas by pulling up to the pump and paying. When a local government purchases gas, it may buy thousands of gallons for thousands of cars; that takes more than sliding in a debit card and waiting for the prompt to lift the nozzle and pump. This is how it works for localities: Henrico, Chesterfield, and Hanover counties and the town of Ashland have a collective contract to buy fuel from PM Terminals. Richmond purchases its gasoline in bulk from James River Petroleum. No taxes are charged. To pay for maintaining fleets of individual departments, the localities charge a mark-up to the departments. The bulk purchase and tax exemption make the cost per gallon lower than retail. However, as with retail sales when gas prices skyrocket, departments can find themselves paying a lot more than they anticipated. Last week, the average gas price for metro localities was about $1.34, compared with $1.04 at this time last year. With about two months left in this fiscal year and gasoline prices steadily increasing, local officials are monitoring budgets closely.
Local Governments are Frustrated Over Gas Prices
Gasoline prices are taking a bigger bite out of household finances and gnawing at local government budgets as well, reported the Times-Dispatch newspaper.
More Operations

Rachel Darken Named Fleet Service Superintendent
Madison names Rachel Darken as fleet service superintendent, citing her leadership in fleet optimization, electrification efforts, and workforce development initiatives.
Read More →
Lynchburg Names Ken Lett Director of Fleet Services
Veteran public sector fleet leader Ken Lett brings more than 20 years of experience in strategic planning, financial oversight, and technology-driven operations to his new role leading the City of Lynchburg’s fleet program.
Read More →
Meet the 2026 Public Sector Fleet Manager of the Year Finalists
Recognizing excellence in public fleet leadership is no small task. Learn more about this year’s three outstanding finalists, and join us at GFX in Long Beach to see who takes home the honor.
Read More →
Oklahoma Statewide Fleet Vehicle Contract Multi-Year Agreement to Supply Fleet Vehicles to State Agencies and Municipalities
The Sewell Family of Companies has been awarded a statewide contract to supply fleet vehicles and services to government agencies across Oklahoma through 2032.
Read More →
Costs, AI, EVs, and Sales in Government Fleet | GovCast Shorts
On the go and want a snapshot of our top industry news? Check out Government Fleet's new video short of what's been happening.
Read More →
A Practical Approach to Fleet Cost Analysis in Government Operations
Government fleets face a distinct set of challenges that make cost analysis both more difficult and more critical.
Read More →
Closed: Vote Now for the Public Fleet Hall of Fame
Fleet professionals can now vote for the 2026 inductees of the Public Fleet Hall of Fame. Anyone affiliated with the public fleet industry, including fleet professionals, fleet technicians, or other staff members, and suppliers, can vote.
Read More →
Finding Your People | The Fleet Breakroom
Why the fleet community matters, how it helps with education and support, and why asking questions can save you more trouble than you think.
Read More →
Women in Fleet, Salary Trends, AI, and More| The March Dispatch
In this monthly lookback, we’re talking about Women’s History Month coverage, the latest Government Fleet salary data, how fleet leaders are dealing with nonstop change, and more.
Read More →
Safety by Design: Power and Protection in the Freightliner 114SD Plus
Safety and productivity go hand-in-hand on today’s vocational jobsites. The Freightliner 114SD Plus combines advanced driver-assist technologies with proven reliability to keep crews moving constantly from start to finish. Learn how safety by design can protect your team, reduce risk, and maximize uptime.
Read More →
