Tips for Dealing with High Fuel Costs

Fuel supply was the No. 1 recovery issue faced by Gulf Coast-area pupil transporters in the wake of the devastating 2005 hurricane season.

Hurricane Katrina wiped out much of the petroleum distribution lines to Louisiana, Mississippi, Alabama and Florida and, in the process, drove up fuel prices nationwide. Charlie Hood, Florida's director of student transportation, told attendees of last month's Transporting Students with Disabilities & Preschoolers conference in Orlando, Fla., that schools learned valuable lessons on how to prepare for storms later this year. Weather experts said the environment has entered a period where a weakened Gulf Stream between Europe and the East Coast of the United States will intensify tropical storms for years to come.

Hood said the first 48 to 72 hours before a hurricane hits land is crucial for school districts because that is when terminals shut down so all school districts, not just those along the Gulf, should have emergency checklists in place for any natural disaster. He advocated keeping all storage tanks full and to keep back-up records on all operations because many schools had theirs destroyed by water. In the meantime, options exist to save on fuel prices that remain in a state of flux.

"There are a lot of things you can do with fuel bids," he added.

Following a survey of its contractor members last September, the National School Transportation Association reported that fuel consumption can range from 15,500 gallons to 3.25 million gallons per year. The median reported usage was around 68,000 gallons.

Despite only a 20-percent response rate, the figures represent much more than simply a drop in the bucket.

With consumer diesel prices remaining around the $2.50 per gallon mark, despite minor up and down fluctuations since the New Year, school bus operators don't figure to pay too much less minus federal and state excise taxes. The bottom line is prices at or near the $2 mark hurt.

Recently the Oklahoma Department of Education surveyed 540 school districts in the state (436 replied) and discovered new expenditures of nearly $4.3 million for an average of more than $9,800 per district. Meanwhile an increase of propane and CNG usage has driven up costs in that arena.

"When I talk to superintendents they want that one magic bullet that will cut 10 to 15 percent off their fuel prices," McLerran said.

NSTA's Tool Kit "Controlling Fuel Costs" continues to provide school bus contractors with exclusive tips to reduce fuel-related costs to their fleets. From September 2004 to September 2005, NSTA reported to its members, the price of diesel fuel increased an average of 58 percent, or nearly a dollar per gallon. Meanwhile average school transportation contracts increased less than 3 percent.

NSTA said most contractors are not able to pass along fuel cost increases; some contracts do not include a fuel adjustment clause, and unlike other bus modes, operators are unable to increase fares or add a fuel surcharge to prices. ( See story on pg. 40 for an update on fuel escalation clauses used by Student Transportation of America) . School district-operated fleets see similar problems.

"What you can do, though, is make sure that you are using every strategy within your control to manage your fuel costs," writes NSTA. "You may already employ various techniques to increase fuel efficiency as part of your regular operations, but the likelihood is that there are others you haven't considered."

The main goal is to conserve, conserve, conserve, which can reduce fuel costs by 1 percent; seemingly not much but NSTA says that is enough for companies to recover their membership dues. But with school bus operations being what they are, and with the tips espoused by NSTA's kit being proprietary, there are some options open to all.

McLerran advocates that school districts concentrate on monitoring driver behavior. For example, he said drivers who allow the bus wheels to roll at as little as 2 mph while waiting at a red light or stop sign can increase fuel economy during eventual acceleration.

"There's a safety benefit to read the lights and reduce speed if you see a red light ahead," he explained. "Keeping the wheels rolling will save on fuel and the brakes."

Instead a host of options exist from co-operating with neighboring school districts on fuel purchases to implementing a three-minute limit on school bus idling. Then of course there's maintenance, as clogged fuel filters can increase consumption. Additionally, McLerran said some school districts purchase fuel at the commercial pump and fail to realize they are eligible for fuel excise tax breaks. Schools can avoid fuel transportation fees and terminal prices and can lock in rates with suppliers.

"Someone in the purchasing chain should know that." McLerran added.