New York MTA fuel contract to use Argus prices

OREANDA-NEWS. The New York Metropolitan Transportation Authority (MTA) awarded Sprague Operating Resources a five-year contract to purchase and deliver ultra-low sulfur diesel (ULSD) fuel on an Argus index.

Sprague's purchases will be indexed to Argus' ULSD assessment as part of an agreement adopted by MTA's board of directors in April.

The contract runs from 1 July 2015 through 30 June 2020, and is for the provision and delivery of about 48mn USG of ULSD annually to 28 locations, with an estimated value of \$633.3mn.

Sprague was awarded the contract after the MTA issued a request for proposals in January 2014. The RFP drew proposals from Mansfield Oil, Castle Oil, United Metro Energy and the incumbent, Sprague.

Argus gasoline and diesel price assessments are widely used across the US by major refiners, diesel retailers and municipalities.