Iowa County accepts fuel contract for 2024

MARENGO — Iowa County supervisors attempted to predict the future Friday as they considered fuel bids for 2024.

“I like where diesel’s headed right now,” said Supervisor Alan Schumacher during last week’s meeting of the Iowa County Board of Supervisors. He suggested supervisors lock in a price rather than accepting a price margin; war in the Middle East will increase the cost, he predicted.

Fuel is about 80 cents cheaper than it was a year ago, said Iowa County Engineer Nick Amelon. Crude oil is about $70 a barrel right now.

That could double “if everything hits the fan other there,” said Schumacher. Supervisors took the margin last year, but in 2021 locked in a price. “I’d like to lock it in,” said Schumacher.

The other supervisors on the board disagreed and voted to contract with New Century FS or fuel at 13 cents and 11 cents above the Iowa Department of Transportation rack price, the price of gasoline or diesel, loaded onto a truck at the distribution terminal, ready for delivery to end users or retail stations.

Current DOT rack price is $2.68 for diesel 1 and $2.42 for diesel 2, said Amelon. The county has to pay some fees, but it doesn’t pay fuel tax, he said.

Amelon said he had no preference for which way the supervisors chose to contract for fuel. “I don’t think you can go wrong,” he said.

By locking in the price “you’re paying an extra 40 cents for right now,” Amelon said, but if prices increase, the county can save money, and locking in the price makes budgeting easier.

The last time the county locked in the price, it saved $30,000 to $40,000, Amelon said. Prices increased last summer but have gone down recently, he said.

Supervisor Chairman Kevin Heitshusen said he thinks prices will drop because this is an election year.

“I think you’re right,” said Supervisor Abby Mass. Politicians aren’t going to let gas prices rise during an election year, she speculated.

Heitshusen, Maas, Chris Montross and Jonathan Deger voted in favor of contracting with new Century for the margin price. Schumacher voted no.

The fuel contract runs from Feb. 1 through Jan. 31.