Greenfield locks in fuel bid, huge savings for 2015

Jan 25 2015

Reprinted courtesy of the Greenfield Daily Reporter

Local units of government responsible for filling up hundreds of tanks with gas are pleased at the pump.

City officials in Hancock County are rejoicing over the price of gas. From fire engines to dump trucks, the savings at the pump are not only obvious now but could reach the six-digit figures over the course of the year.

The city of Greenfield, for example, will save roughly $85,200 this year with a low, locked-in gas price compared to 2014. Other communities don’t lock in a gas bid, but pay as they go along. With the fluctuating price of gas, it’s hard to tell which communities will be better off in the long run.

It’s sort of a guessing game on how to buy gas. Mike Fruth, director of utilities for the city of Greenfield, said for years, the city has locked in an annual, per-gallon price for gasoline and diesel.

In December, the city’s works board agreed to a $2.11 per-gallon bid for regular gasoline from Harvest Land Co-Op, alongside a $2.41 diesel bid. That’s a 26 percent savings from 2014 fuel prices, when gas was locked in at $2.86 per gallon and diesel, $3.25.

“It’s just our good fortune with the market,” Fruth said. “We’re locking that price in, and the price is good for the year.”

But since then, the price of gas has dropped even more.

To learn more about CountryMark price risk management programs, visit CountryMark's website on fuel contracting

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