Anne Arundel County will get a taste of the pain at the pump experienced by the rest of the population this week when it comes time to purchasing fuel.
“We?ll feel it real hard this week,” said Fred Schram, director of central services. “But that said, we?ll always be paying less than the market.”
The county has been purchasing fuel on the spot market for about four months since it ended its contract with Petroleum Traders. Under that agreement, the county was paying $2.52 per gallon to fuel its fleet that includes about 2,300 gas and diesel vehicles.
When the contract ended, the market price for gasoline was less than $2 per gallon, Schram said, so the county saved an estimated $70,000 each month. Since then, the county has paid an average of $2.40 per gallon after some comparison shopping.
Schram said the county has so far spent well within its budget for fuel and has projected another 15 percent increase for next year?s budget. “Of course, all bets are off if there?s another natural disaster,” he said.
With high fuel costs becoming the norm, county staff have cut back on the number of face-to-face meetings, and many have been offered the option of four-day work weeks.
Bob Leib, director of business and government services for the Anne Arundel County Public Schools, said gas prices have not affected regular school activities, but the school district has budgeted for an increase in costs next year.
The cost of fuel is included in the agreements the school district signs with its independent school bus contractors. But the district pays for fuel for buses it uses to transport children to special education classes and for the other district fleet vehicles.
Dennis Hirsch, director of budget and finance, said the district has requested $1.08 million for gas and diesel for fiscal 2007. In 2006, the district budgeted $648,060 for fuel, but increased that number by about $500,000 after fuel prices began to creep higher in the fall of 2005.
