Shipping companies FedEx Corp. (FDX) and United Parcel Service Inc. (UPS) are among five companies committing to a partnership with the government to reduce fuel consumption in their vehicle fleets to help cut U.S. oil imports, the Obama administration said.
The other companies that are charter members of the National Clean Fleets Partnership are AT&T Inc. (T) PepsiCo Inc. and Verizon Communications Inc. (VZ) The businesses, which together operate more than 275,000 vehicles, are pledging to use more electric vehicles and alternative fuels for their fleets, the White House said in a statement.
President Barack Obama will highlight the public-private agreement and encourage other businesses to join the effort at an event later today at a UPS facility in Landover, Maryland.
In an address on March 30, Obama said the U.S. needs to embark on a long-term plan to reduce the nation’s use of fossil fuels. He called for the U.S. to cut oil imports by a third by 2025 from the 2008 level of 11 million barrels daily.
Oil in New York rose to the highest in two-and-a-half years amid concern the conflict in Libya, Africa’s third-largest producer, will prolong output cuts. Crude for May delivery rose as much as 93 cents, or 0.9 percent, to $107.65 in electronic trading on the New York Mercantile Exchange.
The companies taking part in the government program operate five of the 10 largest corporate vehicle fleets in the U.S. They will deploy 20,000 advanced technology vehicles that will save more than 7 million gallons of petroleum, the White House said.
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