Postal Service could save $400 million on cheap gas

The Postal Service has saved about $200 million so far this fiscal year as gas prices remain lower than expected, according to the agency.

Joseph Corbett, the chief financial officer at the Postal Service, said in a conference call with reporters May 8 that if the low gas prices continue the agency could save a total of $400 million in fiscal 2015.

The Postal Service, which has over 200,000 delivery vehicles, is one of the largest federal fleet owners within government, and so fluctuations in gas prices can significantly impact the bottom line.

In April, 2014, gas prices were on average $3.66 per gallon – but that has dropped to $2.46 per gallon in April, 2015, according to the Energy Department.

Corbett said the savings were mostly from its delivery fleet, since fuel savings from reduced air transportation costs tend to lag further behind the market.

See also: Postal Service pushes for reforms as finances improve

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