The Ocala City Council will vote on renewing a wholesale fuel supply contract that provides nearly one million gallons of gasoline and diesel annually for city vehicles.

On Tuesday, Fleet Director John King will present the one-year renewal contract to the council during its regular meeting.

According to a staff memo, the city’s fleet manages approximately 925,000 gallons of fuel each year for various city vehicles and equipment. By securing bulk gasoline and diesel deliveries at wholesale rates, the city says it has achieved significant cost savings compared to standard retail pricing.

The original agreement was established after the City of Ocala partnered with Marion County Public Schools in March 2023 to issue a joint solicitation aimed at securing favorable vendor pricing.

The Ocala City Council approved the initial thirteen-month contract in June 2023 for an amount not to exceed $2.5 million. The council subsequently approved one-year renewals in August 2024 and August 2025, maintaining the same $2.5 million expenditure cap for each term.

If approved, the third amendment to the agreement will extend the contract for another year, beginning July 1, and running through June 30, 2027.

While previous renewals were capped at $2.5 million, the newly proposed extension increases the maximum compensation to an amount not to exceed $3.5 million for the upcoming term.

Founded in 1979, Petroleum Traders bills itself as the largest wholesale fuel supplier in the United States. According to city records, the company agreed to the renewal on April 22, maintaining the original contract terms, conditions, and pricing structures.

City staff is recommending the approval of the contract extension, noting that the Indiana-based vendor’s performance has consistently met expectations over the past three years.

Funding for the fuel is included in individual departmental budgets across the city and will be allocated similarly in the upcoming fiscal year.

The Ocala City Council next meets on Tuesday, June 16, at 4 p.m. at Ocala City Hall (110 SE Watula Avenue).