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Trusted local news leader for Kingman, Arizona & Mohave County
12:03 AM Mon, Nov. 19th

City to budget $100,000 for higher fuel costs.

Kingman will budget $100,000 more for gasoline and diesel for city vehicles in the 2000-2001 budget to cover increased costs from recent hikes in oil prices.

"We have not been hurt in the current budget because fuel prices were below estimates during part of the year," said public works director Jack Kramer.

The total will be divided by department in the budget making the impact easier to absorb, Kramer said.

Water, sanitation, street maintenance, the police department and the fire department are major users of unleaded gasoline and diesel fuel.

The city buys fuel on the state contract that prices fuel a set amount over wholesale process at time of delivery.

The last delivery was Monday April 7 and the price was $1.17 per gallon, the highest paid as far as Karma can remember.

One year ago a delivery was priced at $1.08 per gallon.

The lowest price in the past 12 months was 62 cents per gallon February 17, 1999.

The highest in 1999, other than the $1.08 last April was 99 cents per gallon on August 9, 1999.

Kramer said the fuel prices have fluctuated much more than usual in the past year.

The city spent $91,467 for unleaded gasoline and $82,535.07 for fuel in the 12 month period used to calculate fuel costs for the next budget.

Kramer will ask for a 60 percent increase in the 2000-2001 budget, about $100,000 spread across all the departments.

He said the city gets nine cents rebate from the state per gallon on each truck using diesel and a tax refund on equipment like back hoes and road maintenance equipment not used on highways.

The recent decrease in world oil prices and the drop in delivered fuel prices have eased Kramer's concern about the next fuel budget.

World oil prices were passed $30 per barrel when he began the budget adjustments and dropped to about $23 per barrel while he was working on the budget.

Prices at local outlets dropped during that time also.

"It could have been a lot worse," he said.