Around the country, government agencies are benefiting from low gas prices. Savings in fuel costs can be used to fund vehicle purchases, supply the general fund, or benefit user departments.
by Staff
February 22, 2016
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2 min to read
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Fuel prices continue to slide, and government fleets are benefitting from the reduced costs. The latest data from the U.S. Energy Information Administration (EIA) shows the national regular retail gasoline cost (including taxes) is $1.72 per gallon while national average for on-highway diesel fuel is $1.98.
Around the country, government agencies are benefiting from lower gas prices.
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For the City of San Diego, fleet fuel costs could end up being $2.8 million less than planned, which would help the city end the year with a surplus, CBS8 reported.
Sarpy County in Nebraska has only spent 37% of its fuel budget more than halfway through its fiscal year, KETV reported. In nearby City of Council Bluffs, Iowa, locked-in fuel prices mean the city isn’t saving in fuel costs, but the city’s fleet supervisor believes it will all even out when prices rise.
Also in Nebraska, Lancaster County departments have spent $455,000 on fuel during the first six months of the fiscal year out of a $1.4 million fuel budget, according to the Lincoln Journal Star. Likewise, the City of Lincoln, Neb., has spent just $315,000 during the first half of the fiscal year of the budgeted $1.8 million. At the city, user departments will benefit from this savings.
The Naperville Park District in Illinois paid 28% less for fuel in 2015 than it did in 2014, and officials are hoping the trend continues for this fiscal year, according to the Naperville Sun.
If fuel prices continue to be low, the City of Olean, N.Y., expects to spend about $120,000 in fuel for the fiscal year ending May 31 of its budgeted $175,000, the Olean Times Herald reported.
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In Kansas, the Butler County Sheriff’s Office spent $88,000 less on fuel and lubricant costs than it had budgeted, KWCH reported. This money goes back into the general fund or is used to purchase new fleet vehicles.
In Juneau County, Wisc., the Highway Commission spent just $230,000 out of a budgeted $385,000 in fuel costs in 2015, according to WiscNews.
As public agencies work to cut emissions from off-road operations, fleets are turning to a mix of renewable fuels, hybrid systems, battery-electric equipment and emerging hydrogen technology.
RoadFlex expands its fueling network for public sector fleets through a new partnership with Refuel, adding more than 250 locations across the Southeastern U.S. to improve access, savings, and efficiency.
Fuel management can become a tricky obstacle, but smart strategies and new tech have turned it into a well-oiled machine where price prediction is art, and cost control is science.
A major point of debate in fleet management is using diesel vs. gas cars and trucks. Choosing to purchase gasoline engines instead of diesel ones for medium-duty trucks may be an unpopular decision, but is it the right one?
On-site fueling has its pros and cons, and even if it seems like the best option for the fleet, there are still two big obstacles to overcome: getting the stamp of approval and basically everything pertaining to the infrastructure.