How Philly school district, SEPTA are avoiding pain at the pump
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The Philly school district and SEPTA are largely avoiding the pain of skyrocketing fuel prices and have no plans to cut bus routes or reduce service.
Why it matters: The Iran war is sending diesel costs higher just as school districts and transit agencies — including in Philly — are grappling with tight budgets.
The big picture: Elsewhere in the nation, rising fuel prices have hit school districts particularly hard.
- Many are consolidating routes and cutting optional trips as they struggle to afford both fuel and drivers.
Context: Locally, diesel prices hit $6.45 yesterday, up from $3.89 during the same time last year, per AAA.
- That's a roughly 66% jump.
- Plus: Diesel prices recently hit an all-time high locally on Sept. 22 ($6.57).
Zoom in: SEPTA has mitigated the effects of rising fuel prices by locking in prices several months in advance — a practice called hedging, spokesperson Andrew Busch tells Axios.
- And SEPTA runs a fully diesel-electric hybrid bus fleet, which helps make the agency less vulnerable to rising fuel prices.
- "While costs have gone up for SEPTA's fuel purchases, we are still well within our budgeted amounts," Busch says.
Yes, but: As prices have remained elevated and fuel contracts have expired since the start of the conflict, SEPTA is hedging less.
- The agency now pays market price for 80% of its fuel, up from 20% when the conflict with Iran began.
Meanwhile, the Philly school district's own bus fleet is relatively small because the bulk of its elementary school students are transported by private companies contracted with the district.
- Older students can get SEPTA passes.
- Plus: The district's own fleet includes 65 electric and 43 propane buses, spokesperson Monique Braxton says.
What else: Jen Burke, a spokesperson for Zum, which is one of the district's largest bus transportation providers with roughly 200 routes, tells Axios that the company is managing costs to ensure they won't disrupt service in Philly.
- She added that the company sees "significant opportunity" to transition its fleet of buses in the city to electricity in the future.
What we're watching: Impacts of higher prices on the school district's budget are TBD.
- "The [district's] lump sum budget is presented in the spring and we'll see if there is an impact [then]," Braxton said.