Low gas prices saving taxpayers money

If gas prices stay as low as they are, the St. Mary Parish School Board could see a savings of between $50,000 and $100,000, officials said.
Becky Voisin, chief accountant for the school system, said that while the board doesn’t pay mileage, it typically pays bus drivers’ gas charges greater than $1.70 per gallon.
Louisiana gas prices dropped from an average of $2.48 a gallon to around $2 per gallon over the last month, according to gasbuddy.com. Six months ago, the average price per gallon was $3.44 in the state, the website indicates.
Lower gas prices are a reflection of a drop in oil prices, which have lost more than half their value over the last year.
According to the Associated Press, as of this morning, the New York rate for oil prices was down 2.4 percent at $47.20 a barrel, while Brent slid 3 percent to $48.62.
In July, the St. Mary School System paid $29,033.90 in fuel reimbursements to bus drivers. Meanwhile, drivers were reimbursed $41,487.06 in December. Compare that rate with December 2013’s reimbursement of $40,377.27 when gas prices per gallon averaged around $3.15 per gallon.
“It is possible that an extended period of lower prices would allow us to reduce our operational expenses; however, we don’t have enough data to show a trend on cost savings,” Voisin said.
Gasoline reimbursements paid over the past year are:
—December 2013, $40,377.
—January 2014, $29,686.
—February 2014, $35,072.
—March 2014, $38,121.
—April 2014, $38,977.
—May 2014, $37,159.
—June 2014, $38,748.
—July 2014, $29,034.
—August 2014, $29,285.18.
—September 2014, $39,237.
—October 2014, $41,706.
—November 2014, $42,890.
—December 2014, $41,487.
Meanwhile, St. Mary Parish Chief Administrative Officer Henry “Bo” LaGrange said the parish has seen a decrease in fuel costs from 2013 to 2014.
St. Mary Parish Government’s total fuel costs for all vehicles in 2013 was $668,698 as compared to the 2014 cost of $592,146, according to LaGrange.
This represents a savings of $76,552.
LaGrange said 50 percent of the fuel costs are attributable to the Road Maintenance Department and 37 percent is attributable to the operation of the Harold J. “Babe” Landry Landfill.
St. Mary Sheriff Mark Hebert said the department spent $455,762 in 2013 on fuel and $449,715 in 2014, for a difference of $6,047.
He said there is not enough data on the books yet to indicate a savings trend with gas prices continuing to fall.
However, Hebert estimates a $2,000 per week savings currently “because of where gas prices are.”
As for the overall budget, “we’re looking at it as temporary relief and not anticipating it will stay that way,” Hebert said.
The department uses Fuelman cards to allow deputies to fill up at “the most reasonably priced” stations in the areas they patrol, he said.
Morgan City Mayor Frank “Boo” Grizzaffi said the City of Morgan City saw about $3,000 in fuel cost savings in 2014 due to the dip in gasoline prices that started in September 2014. Grizzaffi called the savings “very modest.”
The city’s biggest fuel savings were in the police department, Grizzaffi said.
The City of Morgan City provided the following fuel costs during the past year:
—December 2013, $23,973.
—January 2014, $27,166.
—February 2014, $25,424.
—March 2014, $27,543.
—April 2014, $28,334.
—May 2014, $29,660.
—June 2014, $29,875.
—July 2014, $30,286.
—August 2014, $31,991.
—September 2014, $27,307.
—October 2014, $27,895.
—November 2014, $18,849.
—December 2014, $19,926.
In an email, City of Patterson Public Works Director Steve Bierhorst said, “I don’t think the short drop of fuel prices will last long enough to make a big difference in the budget. This happens from time to time but only lasts for a several-week period.”
The City of Patterson uses an average of 2,800 gallons of gas a month and usually fills the tanks every two to three weeks, Bierhorst said.
At most, the city could only take advantage of low fuel prices a couple of times, he said.
“We do not have the option of waiting for the price to go down to purchase,” Bierhorst said.
The Town of Berwick provided the following fuel costs and usage over the past year:
—December 2013, $6,834 for 2,190 gallons.
—January 2014, $6,300 for 1,931 gallons.
—February 2014, $7,179 for 2,195 gallons.
—March 2014, $7,071 for 2,186 gallons.
—April 2014, $6,784 for 2,005 gallons.
—May 2014, $8,427 for 2,427 gallons.
—June 2014, $8,071 (three weeks) for 2,388 gallons.
—July 2014, $8,239 for 2,414 gallons.
—August 2014, $12,499 for 3,707 gallons.
—September 2014, $8,021 for 2,488 gallons.
—October 2014, $7,108 (three weeks) for 2,335 gallons.
—November 2014, $5,974 for 2,200 gallons.
—December 2014, $6,036 for 2,077 gallons.
Average retail gasoline prices in Louisiana have fallen 7.7 cents per gallon in the past week, averaging $1.95 per gallon Sunday, according to GasBuddy’s daily survey of 2,436 gas outlets in Louisiana. This compares with the national average that has fallen 5.4 cents per gallon in the last week to $2.12 per gallon, according its gasoline price website GasBuddy.com.
Including the change in gas prices in Louisiana during the past week, prices Sunday were 117.7 cents per gallon lower than the same day one year ago and are 48.5 cents per gallon lower than a month ago. The national average has decreased 48.6 cents per gallon during the last month and stands 118.7 cents per gallon lower than this day one year ago, according to GasBuddy.com.
“All in all, it wasn’t a bad week for motorists filling their tanks,” Patrick DeHaan, senior petroleum analyst with GasBuddy.com, said.
Since last week, about 12,000 stations dropped their price under $2 per gallon, with 45.1 percent of all gas stations, nearly 61,000, now selling under the $2 per gallon mark, DeHaan said.
The national average currently stands at its lowest since May 9, 2009, a date that saw 8.9 percent unemployment, DeHaan said. “This time around, the drop in gasoline is far more joyous and isn’t overshadowed by a polar plunge in the economy. And it doesn’t stop there. Overnight, the average price for diesel fuel in the U.S. dropped under $3 per gallon for the first time since Oct. 2, 2010, and will shed yet another 25 to 50 cents per gallon before reaching a bottom, DeHaan said.
“Meanwhile, various domestic mid-continent crudes have dropped to the $30 (per barrel) range, or in the “danger zone” — territory where oil companies are starting to cut back on operations — a zone that could ultimately result in a slingshot back in prices down the road,” DeHaan said.