Bus

Fuel hedging saves Nashville transit $6.5M

Posted on April 4, 2012

A fuel-hedging program implemented in 2009 to offset rising gas prices has saved Metro Nashville and agency partners nearly $6.5 million in fuel purchases.

Fuel hedging is the practice by which large fuel-consuming companies enter into fuel pricing contracts to reduce their exposure to volatile and potentially rising fuel costs. The agencies participating in the program include Metro Schools, Metro Fleet and several regional partners such as the Nashville Metropolitan Transit Authority (MTA), the Regional Transportation Authority (RTA) and the City of Franklin.

Through February of the current fiscal year that ends June 30, 2012, the program has generated almost $2.4 million in savings for the five agencies with contract prices of $2.30 per gallon for diesel fuel and $2.11 for gas.

The first two years of the hedging program had contract prices of $1.88 per gallon for diesel and $1.82 for gas, which generated $632,811 in savings the first year and more than $3.4 million in the second year.

“With fuel costs rising, we have been able to save money by smartly contracting to purchase fuel for Metro vehicles and MTA buses at more favorable gas prices,” Mayor Karl Dean said. “The program has saved Metro an enormous amount of money and has been a great success. Fuel hedging is a great example of local government working effectively on behalf of taxpayers to save money and operate more efficiently.”

More News

NJ TRANSIT awards New Flyer $65M contract for new artic buses

This purchase is a “one for one’’ replacement of NJ TRANSIT’s aging articulated bus fleet as it reaches the end of its expected service life.

METRO opens Call for Papers for BusCon 2019

The show returns to the Indiana Convention Center in Indianapolis Sept. 23 to 25.

Proterra names Walsh sr. VP of sales

Most recently, Walsh was president/COO of Davey Coach Sales Inc.

MBTA expands Boston’s electric hybrid footprint with New Flyer buses

Since 2002, New Flyer has delivered over 750 buses to MBTA, including diesel-electric hybrids and CNG buses.

MCI kicks off its biggest product, service year at UMA Expo

The schedule includes a smaller coach, accessibility, and battery-electric propulsion options.

See More News

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation