Guidebook for Evaluating Fuel Purchasing Strategies for Public Transit Agencies
economics - appraisal/evaluation, economics - operating costs, economics - pricing, place - north america
fuel prices, fuel price risk management, public transit agencies, operating budgets
TCRP Report 156 is a guidebook for public transit agency professionals on how to identify and evaluate risks and uncertainties with respect to fuel prices, and describes tools and techniques for minimizing the impact of these uncertainties over time. This guidebook introduces the concept of fuel price risk management to public transit agencies, identifying alternative purchasing strategies and outlining steps necessary to implement an effective risk management program. It defines and evaluates alternative cost-effective fuel purchasing strategies designed to benefit public transportation agencies of varying sizes, and it provides a management framework to assist transit agencies through the fuel purchasing process. While using this guidebook, it is important to recognize that “risk management” is distinct from “removal of risk.” It does not assure the lowest fuel prices; rather, it seeks to control the impact of price swings on overall transit system operating budgets.
Permission to publish the abstract and link to the article has been given by Transportation Research Board, Washington, copyright remains with them.
Friedman, D., & DeCorla-Souza, K. (2012). Guidebook for evaluating fuel purchasing strategies for public transit agencies. Transit Cooperative Research Program (TCRP) Report 156: Published by Transportation Research Board, Washington.