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Township benefits from drop in gas prices

January 14, 2015   ·   0 Comments

By Mark Pavilons
King Township is enjoying some savings, thanks to the recent drop in gas prices.
The Township doesn’t have any fixed-rate fuel plans, so they pay the price at the pump.
With gas prices at record lows, that comes as good news.
Mayor Steve Pellegrini said with the current prices, they’re saving more than $6,500 per month.
Gas prices haven’t been this low since 2009.
According to the website Tomorrow’s Gas Price Today, with average prices now 35 cents per litre lower than the 2014 national average, motorists can expect a direct savings of more than $14.7 billion this year if pump prices stay the same or drop.
Ed Hankins, director of the treasury office at York Region, said they have several methods of purchasing fuel. While they realize savings at the pump, many of their bulk purchases are done via fixed-price contracts, where the prices are locked in.
He added a lot of fuel is diesel and there’s a big difference between the cost of gas and the cost of diesel.
“Locking in works well for us,” he said.
At the end of the day, fuel costs will eventually rise again, and York’s wise buying methods will continue to reap benefits.

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