USPS One Of Largest Users Of Diesel

Posted on April 27, 2017 by mailomg in Memo 111, Uncategorized // 0 Comments

From the OIG: The U.S. Postal Service has a surface transportation network that, in fiscal year (FY) 2016, consisted of almost 16,000 supplier-operated highway contract routes (HCR) and about 7,600 Postal Service-owned mail transport vehicles. This fleet makes USPS one of the largest users of diesel fuel in the U.S., purchasing about 251 million gallons in FY 2016 at a cost of more than $570 million.

Unanticipated events domestically and globally, including natural disasters, disruptions of or reductions in fuel supply, and increased taxes can significantly affect fuel prices. Diesel fuel has been an extremely unstable cost for businesses to manage.
The OIG found the Postal Service is not financially or contractually positioned to mitigate risks of increasing diesel fuel prices or consumption. … (click for report)

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