Metro Has Locked In Pain At The Pump
Speaking of Metro finances, it looks like the people who buy fuel for the buses have locked in a price of $3.55 a gallon until October of next year.
The buy was completed in "midsummer," according to an e-mail from agency spokeswoman Raequel Roberts, when diesel averaged close to $5 a gallon. METRO's buy might have seemed like a deal at the time, but diesel prices have dropped to about $2.85 a gallon.
"We base our fuel purchase decisions on the need for budget certainty and...it would be folly to establish and live within a budget if we bought at market prices from month to month," Roberts writes. "No one predicted in August, when [regular] gas was $4 a gallon, that it would be $1.59 today."
Buyers guessed low last year and, according to the agency's figures, saved about $17 million on fuel costs. Two years earlier, the agency saved about $3 million. Weird thing is, in the years that fuel buys weren't so great, Metro doesn't list any losses but lists savings as "$0.0."
Houston Texans vs. Tennessee Titans
TicketsSun., Oct. 1, 12:00pm
Battle of the Piney Woods: SFA vs. SHSU
TicketsSat., Oct. 7, 1:00pm
Houston Texans vs. Kansas City Chiefs
TicketsSun., Oct. 8, 7:30pm
Houston Texans vs. Cleveland Browns
TicketsSun., Oct. 15, 12:00pm
TicketsSat., Oct. 21, 7:00pm
Either way, compared to the rest of us, Metro, which burns about 14 million gallons a year, is paying out its ass for fuel right now. Of course, $3.55 a gallon could seem like a bargain this time next year.
-- Paul Knight
Get the ICYMI: Today's Top Stories Newsletter Our daily newsletter delivers quick clicks to keep you in the know
Catch up on the day's news and stay informed with our daily digest of the most popular news, music, food and arts stories in Houston, delivered to your inbox Monday through Friday.