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Fuel Costs: To Lock Down or
Not is the Dilemma, and Gamble By Stephane Babcock According to the U.S. Energy Infor-
mation Administration, fuel prices have
steadily risen since January 2010 to about $4 a gallon in May for diesel, depending on what part of the country you live in. Te added costs have become another bump in the road that transportation depart- ments must deal with when keeping their buses on the road and students on board. “As a nation, we need to push our gov-
ernment and auto industry for alternatives to fossil based fuels now, not later,” said Albert Francisco, transportation manager for Adams County School District 14 in Commerce City, Colo. He added that, if there was a chance to lock in fuel prices now under a contract, he would, especial- ly since “fuel costs will only rise.” But others were not as eager to lock in
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Des Moines, Iowa
a specific price for fuel. Adam Johnson, di- rector of transportation for Union County (N.C.) Public Schools, said the district spends about $25,000 monthly to fuel the fleet of 328 buses, with rising costs of fuel reducing the availability of funds to spend elsewhere in the transportation department. “I would not lock in at the current price
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said Johnson, explaining that North Carolina allots a certain amount of funding for fuel, so he must always be mindful of fuel prices. Union County students will have to
walk a little farther to their bus stops next year, since the department is now in the process of creating cluster stops to cut down on route time and fuel usage. With fuel prices in a constant state of flux, John- son said the only way to stay ahead of the game is to ensure his department is run- ning as efficiently as possible.
Some people consider not locking in or
hedging your fuel cost a terrible gamble. I find that paying an investor so he can make money, no matter the cost of fuel, is not necessarily in the best interest of my
district. ❞ — Allan Griffin, Jr., Humble (Texas) Independent School District
of fuel as I have seen fuel prices start the 2010-2011 school year over $2 per gallon, and then go as high as close to $4 per gal- lon after a few months. Te market is not stable enough to warrant a lock-in price,”
18 School Transportation News Magazine July 2011 “Tis is not an easy task with all of
the demands that we face daily. Pupil transportation continues to sail through uncertain waters. I started my career 15 years ago, and have seen so many changes
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