Diesel price spike squeezes Richmond-area school budgets
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Illustration: Maura Losch/Axios
Soaring diesel prices are adding a new financial headache for school districts everywhere — including in the Richmond area, where hundreds of buses hit the roads every morning.
Why it matters: The Iran war is sending diesel costs higher just as many local school divisions are grappling with tight budgets and rising maintenance costs.
By the numbers: Diesel averaged $6.15 a gallon in the Richmond area on Friday, up from $3.61 a year ago, per AAA.
- That's a roughly 70% jump in a year.
- Richmond-area diesel prices hit an all-time high of $6.38 a gallon on Sept. 22.
Zoom in: Richmond-area school systems operate massive bus fleets, most of which are powered by diesel, making them particularly vulnerable to rising fuel costs.
- Chesterfield transports more than 55,000 students across 26,000 miles daily, per the district.
- Hanover's 180 daily buses cover another 9,500 miles, per the Times-Dispatch.
What they're saying: "This was already a tight budget year without skyrocketing diesel prices," Richmond Public Schools Superintendent Jason Kamras told the Times-Dispatch.
- The district runs more than 200 buses daily, each covering anywhere from 30 to more than 100 miles, per the RTD.
Still, local school divisions say they're closely monitoring fuel costs, and none has planned transportation cuts as of September.
- Chesterfield told WWBT last month that it builds contingencies for rising fuel prices into its budget.
- Henrico said its budget allows for modest fuel increases and that it can adjust transportation spending if necessary.
- Richmond Public Schools said its fuel contract limits supplier markups.
Flashback: The Biden administration offered federal funding to electrify school bus fleets.
- Henrico — which has a fleet of 579 buses — was awarded $3.45 million in federal funding in 2024 to replace 10 diesel buses with electric models, per the EPA.
- The division also operates 20 propane-powered buses and plans to add 20 electric buses this school year, per HCPS.
- Separately, RPS was awarded four electric buses in 2020 through Dominion Energy's Electric School Bus Program, while Chesterfield received two in 2021.
Yes, but: Electric buses aren't an immediate fix everywhere, particularly rural divisions facing long routes, challenging terrain and maintenance limitations, Axios' Josephine Walker reports.
Zoom out: Nationwide, some school districts are consolidating routes and cutting optional trips as they struggle to afford both fuel and drivers, Walker reports.
- A May survey of 188 school officials found 40% had adjusted routes, 27% enforced anti-idling rules and 25% cut routes.