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Continued falling fuel prices could mean big savings for the city’s fleet, but not right away

THUNDER BAY -- Every dime-a-litre difference in fuel is $400,000 for the city's fleet. But because the city buys in bulk and has its own pumps for its more than 750 vehicles, it doesn't see costs or savings as quickly as the average consumer.
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A plow pulls into the city’s fleet services department on Front Street. (Jamie Smith, tbnewswatch.com)

THUNDER BAY -- Every dime-a-litre difference in fuel is $400,000 for the city's fleet.

But because the city buys in bulk and has its own pumps for its more than 750 vehicles, it doesn't see costs or savings as quickly as the average consumer.

Typically pricing is about a month behind. The city is averaging around $1.18 per litre right now compared to $1.05 for drivers in Thunder Bay.

"That likely won’t be seen (by fleet services) for a number of months until it works itself into the system," city fleet services manager Jim Suffak said.

"It could easily swing the other way depending on market conditions and world events."

The corporation, which includes emergency vehicles, uses around four million litres of fuel, around 75 per cent of it diesel, every year. Even five years ago there was more stability in the oil market but today pricing can change dramatically from month to month.

Suffak said with fuel making up more than 40 per cent of the fleet budget, that volatility can make predicting costs and savings difficult.

But there are trends. Bulk diesel prices tend to dip in the summer and rise in the winter over the past decade Suffak said.





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