Palatine Approves Advanced Fuel Purchasing
The Palatine Village Council approved an agreement aimed at providing protection against rising fuel costs.
The Palatine Village Council Monday voted to allow the village manager to purchase fuel in advance in an effort to save money on fuel costs.
The village has historically explored different ways to purchase fuel at the best prices; they include fixed margin price contracts, forward purchase contracts and spot purchasing, according to a village memorandum.
Village Manager Reid Ottesen said spot purchasing has proven the most successful in recent years, because it locks in prices that will last through the end of the year.
Spot purchasing is when a volume of fuel is purchased in advance for use over a 12 month time frame.
"This can provide us some security and help to stay in budget," Ottesen said.
Fifty-percent of the fuel needs over the next 12 months will be purchased through a contract, and the remaining will be obtained through spot purchasing.