WATERBURY, Conn. – A drop in oil prices will equate into a savings of nearly $750,000 for Waterbury taxpayers after the city locked into fuel prices of less than $2 a gallon for gas and diesel for the next fiscal year, Mayor Neil M. O’Leary announced.

The city recently locked into per-gallon prices of about $1.98 for diesel and about $1.91 for 87 Octane gasoline for the 2016-17 Fiscal Year for use by the city’s fleet of vehicles. Recent falling oil prices means the city will save $548,000 over this year’s prices after agreeing to purchase 630,000 gallons of diesel, and another $199,200 with the purchase of 230,000 gallons of gas.

The total savings over the current year’s costs will be $744,200.

“That’s a savings of nearly three-quarters of a million dollars,” Mayor O’Leary said. “We are always looking for new ways to save money for our taxpayers. We’re happy to find those savings anywhere and everywhere we can.”

The City locked in the low prices with the Dime Oil Company of Waterbury after discussions among Purchasing Director Rocco Orso, Finance Director Michael LeBlanc and Senior Mayoral Advisor Kevin DelGobbo.

They agreed that, although oil prices could continue to fall, now was the time to lock into low prices because oil markets could see some volatility in the coming months and year.

“We decided to limit our downside risk and take the savings we had in hand,” DelGobbo said.

“Current oil prices could double by July 1, 2016 but the city will still be locked into these low prices,” Orso noted.