Brace yourself: gas prices set to spike

Public fleets across the country are preparing for what $200/barrel oil could mean for them at the gas pump. The pain might be particularly acute for those on strict 2011 budgets that were based on $3 gasoline projections. Although many publicly-run fleets have tax exemptions and contracts that can insulate their fuel costs for a while – many are thinking about switching to alternative fuels in the future.

• Reno, NV:  the city’s fleet does not expect it will be able to keep costs under the projected $1.5 million budget if prices keep rising, according to channel KOLOTV.
• Schuylkill, PA: public fleets are worried about expiring fuel contracts and possibly huge budget cuts – a one-two punch in the gut of public funding for fleet fuel.

Can there be any silver lining in all this? Why, yes – one sheriff’s office is saving $105,000 per year on fuel costs  – just by switching part of their fleet to autogas as part of the Southeast Propane Autogas Development Program (just call it SPADP “spah-duhp”).

Even though the Muscogee County, GA fleet has its own gasoline contracts for $2.73 a gallon (retail price: $3.50/gallon), the 36 autogas-powered patrol cars converted by Alliance AutoGas start “on gas and then [switch] to propane that is about $1.34 cheaper than the gasoline the department purchases,” creating an annualized cost savings of $105,000.