Tuesday, July 08, 2008
City Claims Savings From Hedging Fuel Purchases
Under an energy risk management agreement with KeyBank the City of Indianapolis has been able to achieve monthly savings on its latest fuel purchases of nearly $40,000. Hedging has allowed the City to purchase 43% of the fuel for its fleet services at $3.22 a gallon and the remaining 57% between $3.12 and $3.35 a gallon. Fuel prices at the pump are now topping $4 a gallon. A press release from Mayor Greg Ballard's office says the previous administration allowed the fuel hedge program to expire in December, which exposed the City to increased fuel costs of between $4-$5 million this year. The new administration subsequently reinstated the program to take advantage of the savings.