Grappling with rising gas prices and a $1 billion budget deficit, the Arizona Department of Administration is urging agencies with vehicle fleets to limit trips whenever possible, according to a report by The Phoenix Business Journal and Newsradio 620 KTAR. A spokesman said higher gas prices will impact state agency budgets and as a result the department is advising agencies to “make sure they're doing a good job of utilizing their cars, and take necessary trips, not frivolous, wasteful trips.” The report featured several other fleets that are feeling pressure from higher prices at the pump:
  • Since last year, diesel expenses for water and power provider Salt River Project have increased 100 percent while unleaded fuel costs have jumped 50 percent.
  • A spokesman for Arizona Public Service said the utility’s fleet has seen fuel costs increase 6 to 7 cents per mile, or an additional $112,000 per month.
  • Airport transportation company SuperShuttle, which is based in Phoenix, said fuel costs comprise eight to 10 percent of its 1,500-van fleet’s operating costs when fuel prices are stable. "The company is in the transportation business and it's not a high margin-based business and 4 or 5 percentage points can really take you from being profitable to not profitable," said Tom LaVoy, chief financial officer.
  • Southwest Gas Corp. has managed to avoid some of the havoc caused by skyward fuel prices: 45 percent of its fleet runs on natural gas, which has not experienced the same sharp uptick in price as gasoline.
  • Originally posted on Fleet Financials