Largest US MTA switches fuel price indexation to Argus
The New York Metropolitan Transportation Authority (MTA) has announced a long-term fuel supply contract using price assessments published by global energy and commodity news and price reporting agency Argus.
The New York MTA awarded Sprague Operating Resources a five-year contract to purchase and deliver ultra-low sulfur diesel (ULSD) fuel on an Argus basis, following a formal bidding process. The contract runs from 1 July 2015 to 30 June 2020, and is for the provision and delivery of about 48mn gallons/yr of ULSD to 28 locations.
“We are delighted that New York’s transportation authority has made the switch to using Argus for its fuel price contracts,” Argus Media chairman and chief executive Adrian Binks said. “This move is another example of the increasing adoption of Argus prices in the US downstream sector.”
Argus gasoline and diesel price assessments are widely used across the US by major refiners, diesel retailers and municipalities. Government entities find the Argus method of assessing prices based on an entire day of trade to align with their need for transparency and reliability.