Palmer Town­ship locks in gas prices

$1.58 per gal­lon for two years, $2 for diesel

The Morning Call - - LOCAL NEWS - By Kevin Duffy Kevin Duffy is a free­lance writer for The Morn­ing Call.

Palmer Town­ship has opted for the cer­tainty of fixed pric­ing over the next two years in buy­ing whole­sale gaso­line and diesel fuel.

Su­per­vi­sors on Mon­day awarded con­tracts to Petroleum Traders Cor­po­ra­tion of Fort Wayne, In­di­ana, for gaso­line and Tal­ley Petroleum En­ter­prises of Grantville, Dauphin County, for diesel fuel.

Both agree­ments lock in the town­ship for two years at fixed rates.

“Two-year agree­ments are the bet­ter deal,” Chair­man David Colver said be­fore sep­a­rate 3-0 votes were cast to en­ter into agree­ments with both providers.

Su­per­vi­sors K. Michael Mitchell and Jef­frey Young were ab­sent.

The town­ship re­quested both fluc­tu­at­ing and fixed prices per gal­lon for one- and two-year terms in so­lic­it­ing bids.

Petroleum Traders was awarded a two-year fixed con­tract to pro­vide the town­ship 119,000 gal­lons of 87 oc­tane fuel at $1.58 per gal­lon.

The town­ship’s agree­ment with Tal­ley Petroleum is for 32,000 gal­lons per year of ul­tralow sul­fur diesel fuel at $2 per gal­lon.

Sub­ur­ban Propane, one of two other bid­ders along with Papco, sub­mit­ted one- and two-year fluc­tu­at­ing pro­pos­als at $1.85 per gal­lon for gaso­line and $2.03 for diesel.

Each pro­posal for the fluc­tu­at­ing op­tion in­cluded a markup price over the rack price.

Es­ti­mates call for the town­ship to use about 53,000 gal­lons of gaso­line and 31,700 gal­lons of diesel fuel across all of its de­part­ments in 2020, with Sub­ur­ban EMS us­ing 66,000 gal­lons of gaso­line and 300 gal­lons of diesel, ac­cord­ing to Tom Adams, di­rec­tor of pub­lic ser­vices.

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