Indianapolis hedges against escalating fuel prices
A fuel hedge and savings programme has netted the US city of Indianapolis over $39,000 during the month of June, according to a press release from the Mayor’s office.
Under a contract with US bank KeyBank, 43% of the city’s Department of Public Work’s gasoline purchases are capped at $3.22 per gallon and the remaining 57% fluctuate between $3.12 and $3.35 per gallon. Last month, the hedge programme capped the city’s costs at $3.22 to $3.35 and protected it from extreme volatility in the gasoline market.
The programme originally expired in December 2007, leaving the City exposed to rising gasoline costs to the tune of $4 million to $5 million between January
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