The U.S. Department of Justice’s Office of Inspector General recently released their audit findings regarding the FBI’s fleet fuel procurement program. A number of deficiencies were identified with the FBI’s purchasing controls including not verifying quantities and prices invoiced by their fuel suppliers. You might find it surprising that the FBI didn’t pay close attention to these details but fuel management is obviously not one of their core competencies. In fact, it’s easy to do a web search and find many government audit reports that identify significant issues with their associated departments’ fuel procurement procedures.
Crude oil prices were very volatile during September and the month ended just over $48/barrel. This is approximately 12% higher than where the month started. The following graph shows the daily price movements over the trailing three months: