world-economy

School Districts Grapple With Diesel Costs as New Year Begins

Escalating fuel prices are straining school district budgets nationwide as the academic year opens. Diesel costs have climbed nearly $2 per gallon compared to last year, reaching $5.62 per gallon as of Wednesday. The impact is acute given that approximately 90% of the nation's 480,000 school buses operate on diesel fuel. School districts nationwide have been wrestling with rising costs since spring, when the war with Iran started and fuel prices rose. A May survey found more than half of responding districts already exceeded their fuel budgets due to rising prices. The Yakima School District in Washington projects diesel expenses could surge 38% for the 2026-2027 school year, totaling $130,000 in additional costs. The district has consolidated routes, staggered start times and increased bus capacity to offset expenses. Officials project savings of $400,000 to $500,000 through these measures, though operational challenges persist with extended routes and driver shortages.