Archive for Thursday, December 3, 2009

County agrees to buy fuel for fixed price

Douglas County leaders are looking to lock in a set fuel price for county vehicles.

December 3, 2009


The Douglas County Commission gave approval Wednesday to buy half the county’s fuel for a fixed price for 2010.

A fixed-price purchase of 50 percent of both unleaded and diesel fuels wouldn’t necessarily guarantee a savings. It would, however, provide county officials with a valuable budgeting tool.

Because of a dip in energy prices that started in 2008, the county’s results for the first year were mixed.

Because diesel fuel prices were lower than expected, the county spent an average of 49 cents per gallon more than it would have on the 38,600 gallons of diesel fuel it purchased at a fixed price. That’s an extra $18,914.

However, unleaded fuel was an average of 17 cents per gallon more expensive than the county’s locked-in rate, saving the county $8,380 on the 48,720 gallons it purchased.

County Commissioner Jim Flory said he’s aware fuel prices are in flux and didn’t want the county to get hit with high gas prices.

“An event halfway around the world can have a small effect on prices here,” Flory said.


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