City’s Creative Approach to Fuel Cost Management Realizes Significant Savings
June 26, 2014
Albuquerque, NM— In 2011, Mayor Richard J. Berry brought the private sector practice of fuel hedge management to City Hall and the taxpayers of Albuquerque have benefited. The mayor’s initiative has saved taxpayers over $2 million to date.
While citizens are currently paying close to $3.50 per gallon for regular unleaded to fill up their vehicles at the pump, the city is only paying $2.76 per gallon to fill up city police cars and other taxpayer owned vehicles. For diesel vehicles, citizens are currently paying $3.74 to fill up their vehicles, but the city is only paying $2.84 to fill up city diesel vehicles.
“By bringing smart private sector practices to City Hall we have been able to save taxpayers millions of dollars.” said Mayor Berry. “Our team of financial professionals has really done a good job to this point in hedging these fuel costs during volatile times,” he added.
While the primary purpose of hedging fuel prices is to allow the city to establish a fixed and stable cost for budgeting purposes, it also provides an opportunity to save taxpayers money in the long run.
This is the third year the City of Albuquerque has participated in fuel hedging activities. This fiscal year alone, the city is on track to save more than $900,000; that’s equivalent to funding 12 firefighter positions, or keeping a library open for a full year, or paying rent for 150 homeless individuals for a year.