MTA Will Save On Next Bus Fuel Contract

Back in September, I blogged about MTA NYC Transit being price gouged on their bus fuel contract with long time supplier Sprague Energy Corporation. The gouging occurred when the MTA saw its cost rise by approximately $26M which was triple what they had paid the previous year. These events led NYC Transit to request a review of their bus fuel contract a few days later.

Lets fast forward to today where NY1 broke the story that the agency has agreed to a 5 year contract worth $700M with Sprague Energy Corporation which with pending board approval, would provide them with 55M gallons a year of ultra-low sulfur diesel.

Click here for the complete report.

The savings accomplished with this potential deal are pretty decent. My main concern is whether or not this was the best deal possible. I am skeptical on that being the case considering Sprague’s past actions. I would love to know if the MTA received any other offers. If so, was this truly the best they could get?

xoxo Transit Blogger

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.


[…] days ago, I blogged about how the MTA will save money on their next bus fuel contract with longtime provider Sprague Energy Corporation. In that same entry, I alluded to the recent […]

[…] Corp. Fast forward to 2009 when I wrote about the agency announcing a new deal with Sprague that enabled savings which I did question. Now lets go to the present where New York State Comptroller Thomas P. […]

Leave a comment