Diesel price surge strains U.S. school budgets |
Soaring diesel prices linked to the Iran war are putting severe pressure on already stretched U.S. school district budgets, forcing many districts to dip into reserves, cut spending elsewhere, and reconsider transportation operations. Since December, diesel prices for U.S. fleets have jumped 67% to $5.52 per gallon, according to fleet management technology provider Samsara, adding an estimated $1.8bn to annual school bus operating costs nationwide. The financial strain reflects wider economic disruption caused by the US-Israeli conflict with Iran, which has affected roughly one-fifth of global oil supplies and triggered one of the fastest fuel price increases on record. School bus operators consume more than 800m gallons of diesel annually in the U.S., making districts especially vulnerable to price swings. James Rowan, executive director of the Association of School Business Officials International, said the speed of the increases has made budgeting particularly difficult for schools. “Districts can plan for higher costs, but rapid swings in prices make it very difficult to budget accurately,” Rowan said.
