Supply Management

Preferred Fueling Network — USPS Secures Lower Fuel Costs for Delivery and Administrative Vehicles

Vehicle fuel costs continue to be highlighted in USPS® Annual Reports as one of the more significant risks to the Postal Service’s return to profitability. To help Post Office™ facilities mitigate their fuel costs in these circumstances, the Transportation Portfolio in Supply Management has recently secured discount arrangements with three regional retail fueling chains for USPS unleaded gasoline purchasers. The Fuel Management Category Management Center (CMC) is creating a network of specific fueling loca­tions, labeled the Preferred Fueling Network (PFN), that offers such discounted fuel pricing for all Postal Service™ Fleet Credit Card users at all of these suppliers’ fueling locations.

Service station chains offering these discounts are:

n Wilco — Retail pump price minus $0.06 at 400 sta­tions in North Carolina, South Carolina, Virginia, and Georgia. In the areas where Wilco stations exist, over 96 percent of the stations have an average unleaded pump price higher than that offered by Wilco.

n Sheetz — Retail pump price minus $0.05 at 400 sta­tions in North Carolina, Maryland, Virginia, Ohio, Pennsylvania, and West Virginia. In the areas where Sheetz stations exist, over 90 percent of the stations have an average unleaded pump price higher than that offered by Sheetz.

n Wawa — Retail pump price minus $0.01 at 200 sta­tions in Delaware, New Jersey, Maryland, Virginia, and Pennsylvania. In the areas where Wawa stations exist, over 97 percent of the stations have an average unleaded pump price higher than that offered by Wawa.

Already national low cost leaders, these service station chains are testing this arrangement with USPS from Octo­ber 1, 2011, through December 31, 2011. If postal fueling participation at these chains warrants it, these arrange­ments can be made permanent and also discounts could increase. If USPS fueling volume does not increase, then these discounts will most likely disappear.

The most current listing of retail locations participating in this fuel price savings program can be found at http://blue.usps.gov/purchase/voyager/blue/index.htm under the heading “Hot Information”. This site will be updated as more participants are loaded into the network. If you have questions, contact Don Perrin, Fuel Management CMC, at donald.r.perrin@usps.gov.