County Executive Leopold Announces Purchase of Fuel At Less Than $2 Per Gallon for County Fleet
Purchase could save $495,000
Annapolis (November 3, 2008) - County Executive John R. Leopold announced today that the County has purchased thousands of gallons of gasoline at less than $2 per gallon, thanks to an aggressive purchasing process that is saving taxpayer dollars.
It was the lowest amount the County has paid for gasoline in almost two years, and will result in a projected 11 percent savings against the FY2009 budget allowance if prices remain constant.
"This Administration is committed to building a foundation of trust with taxpayers by scrutinizing every practice in government to reduce spending," County Executive Leopold said. "Whether it is by implementing hiring freezes, cutting the use of take-home vehicles or effective procurement techniques, we are making a difference."
Anne Arundel County purchases fuel for its fleet from distributors using the spot market, as opposed to buying for an extended period of time with locked-in prices. For example, other jurisdictions are locked in at $2.94 a gallon for gasoline through the month of December and $3.41 a gallon for diesel, while Anne Arundel can benefit from lower prices that reflect the market price.
The County purchased gas for $1.97 a gallon on October 30, and today the average price in the Annapolis area is $2.30 a gallon, according to msn.com. Diesel was purchased at $2.30 a gallon, while the average price is more than $3. The total purchase was 34,000 gallons.