Near record-high diesel prices have some school bus drivers questioning how long the wheels will still go 'round.
Diesel costs almost $3 more per gallon than one year ago. That means it costs $36 more for fuel to drive 100 miles than it did last year. Buses travel about seven miles on one gallon of diesel. Depending on the contract with a school district, the driver or company may be responsible for paying the increase.
“We have to run our buses every day to school. Whether diesel goes up or fuel bills increase, our contract revenue doesn't necessarily increase with it,” said Aaron Sepkowski, immediate past president of the Pennsylvania School Bus Association, and owner of Pocono Transportation in Covington Twp.
School districts and bus operators nationwide have struggled with rising fuel prices since spring, after the war with Iran started.
As of last week, the average price of a gallon of diesel was $6.54. It cost $3.97 a year ago.
Most school districts in Northeast and Northcentral Pennsylvania do not own their own buses. Instead, they contract with transportation providers — from large companies to drivers who own and operate a single bus.
“Prolonged fuel cost increases could push family-owned contractors to leave their industry,” Sepkowski said. “Larger companies may have more financial resources to absorb it, but it's still a difficult period for them.”
Burden to districts, drivers
At 435 square miles, the Wayne Highlands School District covers one of the largest geographical footprints in the state.
Its bus drivers traverse about 3,000 miles daily — enough to travel across the continental United States. The district in the northeast corner of the state uses independent contractors, primarily small family operations, to transport students.
“As you might expect, the price of diesel for buses has a significant financial impact on each of the contractors,” Superintendent Timothy Morgan said. “Beyond the immediate school transportation costs, school districts, like all consumers, feel the fiscal pinch as fuel prices are driving costs in almost all sectors of the economy (supplies, services, etc.).”
Contractors typically absorb the cost increases, but the Wayne Highlands School Board recently voted to provide a diesel stipend. The temporary stopgap gives contractors an additional 20 cents per mile.
Nearly 90% of all school buses in the country run on diesel, according to the Engine Technology Forum.
East Stoudsburg Area School District owns its own buses, but they are fueled by propane, which has not seen the steep cost increase.
Some school districts, including Scranton, now have electric buses in their fleets. In 2022, the U.S. Environmental Protection Agency’s Clean Bus Program awarded 25 buses to the district’s transportation contractor, Pete’s Garage.
For the remaining diesel buses, the district is billed at the end of the year for fuel. If it is over a certain threshold, the district pays the difference. If it is under the district and contractor split the cost. From March to June this year, the cost went over the threshold, costing Scranton about $11,000, according to the district.
Contractors and districts have been hesitant to make the switch to electric, citing cost, necessary infrastructure improvements and a battery charge that may not last long enough for long, rural routes.
A May report by associations that represent school administrators and bus companies found that more than half the districts surveyed nationwide said diesel prices were already pushing them over budget.
Like Wayne Highlands, the Southern Tioga School District is among the largest in the state. Fifty-one vehicles travel 3,728 miles per day, covering about 480 square miles.
The district provides a supplemental fuel payment based on miles driven.
“The diesel costs are a burden to our contractors and the district,” Superintendent Sam A. Rotella Jr. said.
Uncertain future
FishingCreek Transportation serves schools in Columbia, Union and Montour counties. The company is paying 48% more for fuel this fall, compared to one year ago.
Owner Fred Bennett said he’s spoken to many diesel operators in various industries about their futures. He knows as many as a dozen business owners in the region who have developed metrics for the point they would have to shut down if diesel prices don’t decrease significantly.
Bus companies that receive more when fuel goes over a certain amount are also struggling now, Bennett said.
“Usually these settlements are done at the end of the operational year, so in the short term it puts us in a bind,” he said. “But working with the schools is a rewarding experience for what we do.”
Fuel prices compete with other essential expenses, Sepkowski said. Revenue must also support drivers, mechanics, dispatchers, trainers, insurance, maintenance and the replacement of buses, he said.
“Higher fuel costs leaves less room to support the people and the equipment behind every safe trip,” Sepkowski said. “The industry is really suffering with cost increases beyond the contractor's control.”
The fuel costs come as companies continue to deal with driver shortages. School bus driver employment remains 9.5% below 2019 staffing levels, according to the Economic Policy Institute.
“The diesel or the fuel prices put a bind on all employees, drivers of every business, just getting to and from work,” Sepkowski said.
