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

AVTA to become nation's first 100% electric bus fleet

BYD Motors will build and deliver a variety of all-electric bus models including a 40-foot low-floor transit bus, a 60-foot low-floor articulated bus, and a 45-foot commuter coach.

Bridj, KCATA, Ford partner for urban mobility pilot project

The transformative program is the first U.S. public-private partnership that brings together a major U.S. transit agency, an automaker and an urban technology company with the aim of enhancing Kansas City’s existing mass transit system by providing greater access and mobility to residents.

L.A. Metro opens new 'green' bus facility

Division 13 will serve as a bus maintenance, operations and service facility with a multi-level parking garage that accommodates 200 CNG buses, fueling equipment, transportation offices and support areas.

Starcraft Bus named Ford's top volume pool account for 10th year

The company has purchased and sold more Ford E-Series chassis than any other bus manufacturer in North America since 2006.

Cummins announces new 'SmartEfficiency' initiative

The product improvement plan focuses on improved fuel efficiency, lower total cost of ownership and improved uptime.

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

Please sign in or register to .    Close