The U.S. Postal Service still remains vulnerable to fuel price
fluctuations despite cost containment efforts and increased revenues
from the January 2006 rate increase.
The U.S. Government Accountability Office report called U.S. Postal
Service: Vulnerability to Fluctuating Fuel Prices Requires Improved
Tracking and Monitoring of Consumption Information, published last
week, was done at the request of Congress and concluded the agency
must improve the tracking and monitoring of its fuel consumption.
The [USPS] absorbed fuel cost increases through cost containment
efforts and increased revenues from the January 2006 rate increase,
allowing it to achieve net income for the year, the GAO said.
Nevertheless, the [USPS] remains vulnerable to fuel price
fluctuations, due in part to its purchasing process, which involves
buying fuel as needed, often at retail locations.
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