Waste of the Day: Houston Chose Expensive Gas Stations
Topline: Most drivers are willing to go a mile or two out of their way to find a cheaper gas station, but the City of Houston’s employees don’t think the effort is worth it if they can pay with taxpayer funds.
An Oct. 28 audit from the city controller found $5 million spent at commercial gas stations to refill city-owned vehicles, even though the city owns its own fuel islands that can refill vehicles at a much cheaper rate. Over $3 million of the gas was purchased when a fuel island was less than three miles away.
Key facts: Commercial gas stations in Houston charge an average of $3.25 per gallon for regular fuel and $3.68 for diesel, according to the audit. Houston operates its own stations for city vehicles that cost $2.91 per gallon for regular fuel and $3.12 for diesel.
In fiscal year 2024, police and fire department employees refueled their cars using commercial gas stations 90,000 times. Over $740,000 in gas purchases were made during business hours, when the fuel islands were open.
That violates a city law stating that fuel cards cannot be used when a fuel island is less than three miles away, according to the audit. The city’s fleet management department disputed the auditor’s interpretation of the law.
Most of the refuels came during weekends or late at night, when the city-owned fuel islands were closed. While not technically against the rules, it’s still inefficient.
The audit also found a broken security feature on the city fuel cards. Employees are required to enter the odometer reading of their city vehicle before using their fuel card to make sure they are not filling their personal car with gas. But the fuel cards still work even if the odometer reading is entered incorrectly, which could “lead to inappropriate or unauthorized fuel purchases, theft, and/or fraud,” according to the audit.
Employees also spent $557,000 on premium fuel, which the audit claims violates the city code.
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Background: The fuel card program is overseen by Houston’s Fleet Management department, which had a $24.4 million payroll in 2024, according to Open the Books’ database. There were 32 employees making six figures, including Director Gary Glasscock and his $186,000 salary.
Summary: Just as a car is judged on its miles per gallon, Houston should be focused on maximizing the value of each tax dollar.
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