MTA To Pay Triple The Amount For Fuel This Year
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The Metropolitan Transportation Authority will be stuck paying $26 million for fuel this year – three times what it paid last year.
Transit executives were expecting multiple firms to make bids to become the fuel supplier. But no company made a bid by the August 21st deadline, three weeks before their current contract was due to expire.
The MTA was then forced to go to its current supplier, Sprague Energy Corporation, and ask for an extension.
Sprague played hardball, demanding the MTA triple its pay rate and commit to taking a full year's supply. Faced with the possibility of running out of fuel, the MTA was forced to accept Sprague's demands.