County allows short-term average-rack pricing for fuel contracts amid volatile rack rates

Montgomery County authorized a temporary pricing modification to its bulk-fuel contract with Whitener to use an average-rack rate for a limited period so the vendor can source fuel when some racks are inaccessible.

Whitener’s representative told commissioners that certain branded racks were not available to the vendor on some days, forcing the company to procure from higher-priced suppliers and sustain losses under the county’s low-rack contract. “I'm just asking for 60 days just to kinda let the world settle down a little bit,” the Whitener representative said, asking for a short-term change so supply interruptions could be mitigated.

Commissioners discussed market volatility and geopolitical influences on oil prices and supported a time-limited amendment to the contract; the court approved the temporary switch with a 60-day review (the vendor and procurement staff will report back at the end of the period and the county retained discretion to revert or reevaluate pricing terms).

The vendor and county purchasing staff will coordinate paperwork to ensure the contract amendment is implemented administratively and presented in the clerk’s records.