Gassing Up The Fleet

Hernando Today

BROOKSVILLE - Ever wonder how much the county pays for gasoline and diesel to fuel up its fleet?

As of last Friday, Dec. 12, it was $1.53 cents per gallon. Diesel was $1.83.

Of course, the county gets a better rate because it buys wholesale and prices fluctuate almost daily.

Purchasing Director Jim Gantt said the cost to the county is computed by the daily "rack" price on the OPIS index, short for Oil Price Information Service.

That rack price is calculated from the closest distribution point in our area, which is the Port of Tampa.

Once that price comes in, the county adds in state taxes and a delivery charge rate to get the final amount, Gantt said.

Last month, the county secured a deal on gasoline and diesel fuel from a Tampa supplier where the county could get a fixed delivery rate of .027 cents per gallon for gasoline and diesel fuel.

That one-year contract became effective Nov. 24.

So while the price of gas can go up or down, depending on the market, the delivery rate will stay the same, Gantt said.

The county uses an estimated 559,000 gallons of unleaded fuel and 502,000 gallons of diesel annually.

In October 2007, the county's fuel bill was $182,300. At the end of April 2008, it was $220,420, a 21-percent increase.

In October 2008, the bill came to $201,056. But October's bill was higher than normal because of some outside deliveries, said Jack Stepongzi, fleet director.

About half the 500 vehicles in the fleet are light trucks and cars.

County Commissioner David Russell said Hernando County is at the whim of the daily OPIS rack rate.

"Obviously, it's going to be a little more reactive than the market for our area gas stations," Russell said. "You've got stations that are tanked up for a week's worth of sales at one price and that price fluctuates 5, 10 or 15 cents a gallon a week.

Meanwhile, crude oil on the New York Mercantile Exchange gained $5.47 per barrel as Friday's closing price climbed to $46.28 after closing the previous week at $40.81.

Despite the increase, OPEC is scheduled to meet Wednesday in Algeria to discuss another production cut, possibly as much as 2 million barrels per day, AAA Auto Club South reports.

The oil producers are determined to establish "a floor" for crude oil prices, AAA said.

"If OPEC members agree to a 2 million barrel reduction, we can expect to see crude prices move slightly higher on Wednesday," said Gregg Laskoski, managing director of public relations for AAA Auto Club South.

The average price for regular unleaded gasoline in Florida as of Sunday, Dec. 14, was $1.69 per gallon, down from $1.78 a week ago.