Councils in the Black Country team up to purchase cheap fuel
Councils in the Black Country are teaming up to buy cheap fuel for the first time to cut their £4.8 million combined bill, it was revealed today.
All four, Wolverhampton, Dudley, Sandwell and Walsall, want to club together to buy diesel, unleaded petrol and heating oil. The idea is to use their collective buying muscle to cut spiralling bills. And in further plans chiefs want to buy fruit, vegetables, milk and bread together to cut the costs of school meals. The action is planned for January.
The authorities are already part of a so-called Black Country Purchasing Consortium to drive down costs when they can joint tender for services of commodities.
This move comes after the Express & Star revealed talks had been held between elected chiefs on the possibility of forming a super authority such as that set up in Greater Manchester last year.
Councils do not pay VAT on fuel, which means they already would get fuel for 20 per cent cheaper than people at the pumps. Unleaded petrol would be around £107.9 per litre instead of 134.9, and diesel £113.5 instead of £141.9. Those are the current prices at Wednesbury's Morrisons station, Trouse Lane.
Authorities also however make further savings per litre as they buy wholesale instead of at regular retail price.
Sandwell Council is now leading the search for a cheaper deal for all four councils in the face of multi-million pound Government savings targets.
Sandwell's finance chief Councillor Steve Eling said authorities were all being hit by price hikes, like people at the pumps.
He said: "We are paying quite a bit less than people at the pumps, but the increase in the prices of petrol and diesel have impacted on us the same as anyone running their car, or the rising costs for transport companies.
"Anything we can do to further drive down the cost per litre of fuel is something we need to pursue."
The plan is for it to run for a trial 12-months.
